[BUG] Error: UNKNOWN: unknown error, open '\\wsl$\rancher-desktop-data\etc\hosts'

[hencoappel]

Actual Behavior

After a reboot while having some containers running, Rancher Desktop fails to start with the following issue:

Kubernetes Error
Error: UNKNOWN: unknown error, open '\wsl$\rancher-desktop-data\etc\hosts'

Confusingly I've got Kubernetes disabled.

Steps to Reproduce

Not really sure. This seems to be a regular occurrence in our team.
We run several containers with mounted volumes using docker compose.
It seems to be after a system reboot we run into this issue and the only way to resolve it seems

Result

Expected Behavior

Rancher to start up successfully

Additional Information

logs.zip
I've attached all log files after enabling debug.

The only way to resolve the issues seems to be to reset Kubernetes and factory reset Rancher from the troubleshooting menu.
This is very frustrating if you have to do it multiple times a week.

Rancher Desktop Version

1.16.0

Rancher Desktop K8s Version

NA

Which container engine are you using?

moby (docker cli)

What operating system are you using?

Windows

Operating System / Build Version

Windows 11 23H2 22631.4460

What CPU architecture are you using?

x64

Linux only: what package format did you use to install Rancher Desktop?

None

Windows User Only

No response

[hencoappel]

Similar to this previously closed issue: #6011