Cant make wsl2 working with on docker and on ubuntu

This is the list:

aaa@2UL:~$ wsl.exe --list --verbose  NAME                   STATE           VERSION* Ubuntu-20.04           Running         1 <------------note - this is version one  docker-desktop-data    Running         2  docker-desktop         Running         2

When I run docker ps in the bash I get:

The command 'docker' could not be found in this WSL 1 distro.We recommend to convert this distro to WSL 2 and activatethe WSL integration in Docker Desktop settings.

In ubuntu I have the following settings:

This is my Windows info:

Edition Windows 10 HomeVersion 21H1Installed on    ‎10/‎07/‎2021OS build    19043.928Experience  Windows Feature Experience Pack 120.2212.551.0

This command has no effect: wsl --set-default-version 2

I want to be able to access docker from ubuntu, how is that possible?

UPDATE

When I run: wsl.exe --set-version Ubuntu-20.04 2 Nothing happened. this is the output:

Conversion in progress, this may take a few minutes...For information on key differences with WSL 2 please visit https://aka.ms/wsl2The Windows Subsystem for Linux instance has terminated.Press any key to continue...

Thanks