Docker: WSL 2 integration with distro Ubuntu 20.04 unexpectedly stopped with exit code 1

My docker environment was working fine. I restarted my system and it stopped unexpectedly. whenever I try to start docker it throws the following error

WSL 2 integration with distro Ubuntu 20.04 unexpectedly stopped with exit code 1.

I am using the following versions

• Windows 10
• Docker Desktop 4.6.1
• WSL 2
• List item
• .wslconfig (memory=8GB, processors=4)

I have tried following patterns to make it run

• restarted docker and windows many times
• done with wsl upgrade > sudo apt update && sudo apt upgrade -y

I had the same issue when updated docker desktop with WSL2 backed has a work around I did the following steps:

1. In docker desktop settings i enabled again the "enabled integration with other distros"
2. Apply and restart the changes then stop Docker desktop.
3. Enter to Settings -> Apps and search for ubuntu
4. Click on Ubuntu and advanced settings
5. Select repair
6. Restart the computer
7. After computer starts enter to the ubuntu wsl via console or terminal
8. Start docker desktop
9. Try docker ps or docker-compose to check if the error was resolved.

Hope this helps!