Possible Disk Image locations
%userprofile%\AppData\Local\Packages
%userprofile%\AppData\Local\Docker\wsl
If using Docker Desktop, exit the program and shutdown WSL(use terminate if wsl starts up again automatically), check nothing is running
wsl --shutdown
wsl --terminate [Name]
wsl --list --verbose
Start Diskpart with elevated privileges
diskpart
Attach the image file and compress the image
select vdisk file=[path to image file]\ext4.vhdx
attach vdisk readonly
compact vdisk
detach vdisk
exit