How to resolve Error migrating WSL disk on Docker desktop windows 11 WSL 2 backend?

I am trying to change Disk image location in Docker Desktop v4.31.1 on my windows machine following this path:

"Docker Desktop > Settings > Resources > Advanced > Disk image location"

And I am selecting D:Docker directory using Browse Button as new destination. when I click Apply & restart button, it will show following error:

Error migrating WSL disk
An error occurred while migrating the Docker Desktop WSL data disk to its new location:

moving disk file: rename C:UsersRezaAppDataLocalDockerwsldiskdocker_data.vhdx D:DockerDockerDesktopWSLdiskdocker_data.vhdx: The system canot move the file to a different disk drive.

Disk image location will be reverted to its original setting.

Result of wsl -l -v:

  NAME              STATE           VERSION
* docker-desktop    Running         2

Windows info:

Edition Windows 11 Pro
Version 23H2
OS build    22631.3737

Docker info:

Client:
 Version:    26.1.4
 Context:    desktop-linux
 Debug Mode: false
 Plugins:
  buildx: Docker Buildx (Docker Inc.)
    Version:  v0.14.1-desktop.1
    Path:     C:Program FilesDockercli-pluginsdocker-buildx.exe
  compose: Docker Compose (Docker Inc.)
    Version:  v2.27.1-desktop.1
    Path:     C:Program FilesDockercli-pluginsdocker-compose.exe
  debug: Get a shell into any image or container (Docker Inc.)
    Version:  0.0.32
    Path:     C:Program FilesDockercli-pluginsdocker-debug.exe
  dev: Docker Dev Environments (Docker Inc.)
    Version:  v0.1.2
    Path:     C:Program FilesDockercli-pluginsdocker-dev.exe
  extension: Manages Docker extensions (Docker Inc.)
    Version:  v0.2.24
    Path:     C:Program FilesDockercli-pluginsdocker-extension.exe
  feedback: Provide feedback, right in your terminal! (Docker Inc.)
    Version:  v1.0.5
    Path:     C:Program FilesDockercli-pluginsdocker-feedback.exe
  init: Creates Docker-related starter files for your project (Docker Inc.)
    Version:  v1.2.0
    Path:     C:Program FilesDockercli-pluginsdocker-init.exe
  sbom: View the packaged-based Software Bill Of Materials (SBOM) for an image (Anchore Inc.)
    Version:  0.6.0
    Path:     C:Program FilesDockercli-pluginsdocker-sbom.exe
  scout: Docker Scout (Docker Inc.)
    Version:  v1.9.3
    Path:     C:Program FilesDockercli-pluginsdocker-scout.exe

Server:
 Containers: 0
  Running: 0
  Paused: 0
  Stopped: 0
 Images: 0
 Server Version: 26.1.4
 Storage Driver: overlay2
  Backing Filesystem: extfs
  Supports d_type: true
  Using metacopy: false
  Native Overlay Diff: true
  userxattr: false
 Logging Driver: json-file
 Cgroup Driver: cgroupfs
 Cgroup Version: 1
 Plugins:
  Volume: local
  Network: bridge host ipvlan macvlan null overlay
  Log: awslogs fluentd gcplogs gelf journald json-file local splunk syslog
 Swarm: inactive
 Runtimes: io.containerd.runc.v2 runc
 Default Runtime: runc
 Init Binary: docker-init
 containerd version: d2d58213f83a351ca8f528a95fbd145f5654e957
 runc version: v1.1.12-0-g51d5e94
 init version: de40ad0
 Security Options:
  seccomp
   Profile: unconfined
 Kernel Version: 5.15.153.1-microsoft-standard-WSL2
 Operating System: Docker Desktop
 OSType: linux
 Architecture: x86_64
 CPUs: 8
 Total Memory: 3.818GiB
 Name: docker-desktop
 ID: cce2006d-d665-4857-80af-dbfb1eda2369
 Docker Root Dir: /var/lib/docker
 Debug Mode: false
 HTTP Proxy: http.docker.internal:3128
 HTTPS Proxy: http.docker.internal:3128
 No Proxy: hubproxy.docker.internal
 Labels:
  com.docker.desktop.address=npipe://\.pipedocker_cli
 Experimental: false
 Insecure Registries:
  hubproxy.docker.internal:5555
  127.0.0.0/8
 Live Restore Enabled: false

WARNING: No blkio throttle.read_bps_device support
WARNING: No blkio throttle.write_bps_device support
WARNING: No blkio throttle.read_iops_device support
WARNING: No blkio throttle.write_iops_device support
WARNING: daemon is not using the default seccomp profile

I tried with admin privelages also and got same error.

I checked C:UsersRezaAppDataLocalDockerwsldiskdocker_data.vhdx and it is existen.

My D drive has enough free space and it’s file system is NTFS and Compress this drive to save disk space is not checked/activated.

Thanks in advance for any guidance.