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Gut says that WSL might be installed, but can't run the distro. If you run

wsl -d rancher-desktop

do you get a real error from WSL? I would check BIOS or if you are on a VDI making sure nested is supported.

The problem got resolved after I changed the container engine to

dockerd

.

yeah may be a conflict in context w your external containerd and the stub that RD uses for it's containerd support

yeah maybe.