you can shrink it now! You're going to have to change the vhd format to sparse (this is why docker for windows doesn't run on exFAT-formatted SSDs, as I found o

you can shrink it now! You're going to have to change the vhd format to sparse (this is why docker for windows doesn't run on exFAT-formatted SSDs, as I found out a couple weeks ago) and then run compaction on it once. After running compaction once, it should grow and shrink dynamically as you'd expect.