VSCode ACI deployed Docker containers not showing in sidebar

I am new to working with containers, and was doing the docker/vscode tutorial (https://docs.microsoft.com/en-us/visualstudio/docker/tutorials/deploy-to-cloud).

The following issue has arisen during deployment (Step 9 of tutorial):

Containers deployed to Azure Cloud Instances do not show up in the sidebar.

Instead it says: "Failed to connect. Is Docker running?" and "Error: 14 UNAVAILABLE: No connection established"

This is counterintuitiv, as deployment via VScode actually worked.

Docker seems to be correctly installed:

$ docker -v
Docker version 20.10.2, build 2291f61

and the container is running:

$ docker ps
CONTAINER ID        IMAGE                       COMMAND             STATUS              PORTS
agitated-newton     leopkcode/getting-started                       Running             <IP>:<PORT>

so why are running container instances not showing up in the left sidebar of the Docker extension?

I am running VSCode on WSL2.

Source: Docker Questions

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