Reducing space consumption by "Ubuntu on Windows"

I currently have downloaded the "ubuntu on windows"image in microsoft store

I am running the WSL2 using this, that is (though I use the windows terminal) when I run this application I get all my directories in the terminal,

From what I understand in the forum https://discourse.ubuntu.com/t/what-exactly-is-the-ubuntu-on-windows-ms-store-app-for/28246this app is not to be used and the "Ubuntu" microsoft store app can be used to run wsl

My question is will that take less Space on disk and If yes can someone please help how I can move from "UBUNTU on Windows" to "Ubuntu" without losing any of my data

(Currently Ubuntu is Windows is taking about 40 GB of Hard disk space),

Thank You