I prefer to have my WSL distro on a separate drive to keep my system drive small. If you like to do the same, you can move your distro like this:
Create the target directory
For example, I created G:\WSL\Ubuntu-22.04
as target
Shutdown WSL
wsl --shutdown
Move the distro like this:
wsl --manage <DISTRO> --move <TARGET>
If you do this directly after the installation of your WSL distro, it will only take a few
seconds. After this you will find a file named ext4.vhdx
in your target directory.
You can instantly start WSL again and continue your work, a reboot is not necessary.
You can list the installed versions of WSL distros with:
wsl --list -v
And you can use this command to set your standard distro (using the distro name from the list you got with the previous command):
wsl --set-default <DISTRO>