I've had some success with this by doing a factory reset in troubleshooting tab in rancher desktop

The same issue persist for me even after factory reset ..... any other options please but below one being the failing command

wsl.exe --import rancher-desktop C:\Users\Anurag.Raghavan\AppData\Local\rancher-desktop\distro C:\Users\Anurag.Raghavan\AppData\Local\Programs\Rancher Desktop\resources\resources\win32\distro-0.26.tar --version 2

Is the rancher-desktop WSL running after the error message? If it is, can you shell into it (like choosing it in the Windows Terminal app or running

wsl -d rancher-desktop

from Cmd or Powershell) and run the command

sh -c '[ -e /etc/os-release ] && . /etc/os-release ; echo ${VERSION_ID:-0.1}'

We saw that a wsl1 distro works perfectly but if we convert it to wsl2 it does not, returning it to wsl1 works again. Any hint on what to do to make wsl2 have a working network? (windows version 10.0.19042.2006)