How repair new (4.25) docker for windows after wsl compaction?

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Here are instruction - how compact huge ext4.vhdx for docker. Earlier I can just rerun docker and that is. Now with fresh version 4.25 I got Docker Desktop Privileged helper popup and after it the following:

enter image description here

Docker version 2.0 started without any problems.

Any ideas hot to fix?

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Restart host OS fixed the issue