Before shrinking a WSL2 virtual disk, you need to ensure that WSL2 is not running.
You can check if it’s running with the command wsl.exe --list --verbose in PowerShell:
PS C:\Users\valorin> wsl.exe --list --verbose
  NAME            STATE           VERSION
* WLinux          Running         2
  Debian          Stopped         2
  Ubuntu-18.04    Stopped         2
  kali-linux      Stopped         2It should stop when it’s idle, or you can encourage it to stop with the wsl.exe --terminate command:
PS C:\Users\valorin> wsl.exe --terminate WLinuxWARNING : I highly recommend you take a backup of your WSL2 installation. These instructions worked for me, but you could have a different environment that may result in corrupted data. So please, take a backup first!
I discovered you can use the diskpart tool to compact a VHDX. This allows you to shrink a WSL2 virtual disk file, reclaiming disk space. It appeared to work for me without any data corruption, taking the file size down from 100GB to 15GB. Your results may vary though.
You can launch the diskpart tool in PowerShell:
PS C:\Users\valorin> diskpartIt will open up a new window:
Once that has opened, you need to specify the path to your VHDX file.
If you don’t know this path, you can find by first locating the package directory for your WSL2 instance, which lives in: C:\Users\username\AppData\Local\Packages\. Look for the vendor name, such as WhitewaterFoundryLtd.Co for Pengwin, CanonicalGroupLimited for Ubuntu, or TheDebianProject for Debian. Once you’ve identified the folder, you’ll find the VHDX in the LocalState subdirectory.
For me, this path is:
C:\Users\username\AppData\Local\Packages\WhitewaterFoundryLtd.Co.16571368D6CFF_kd...\LocalState\ext4.vhdxWith the full path to the VHDX, you can select it within diskpart:
DISKPART> select vdisk file="C:\Users\myusername\AppData\Local\Packages\WhitewaterFoundryLtd.Co.16571368D6CFF_kd...\LocalState\ext4.vhdx"
DiskPart successfully selected the virtual disk file.Once it’s selected, you can ask diskpart to compact it:
DISKPART> compact vdisk
  100 percent completed
DiskPart successfully compacted the virtual disk file.	Once that has finished, you can close diskpart.

I had to run "Stop-Service -name LxssManager" to use "compact vdisk"