The latter is closed source, proprietary, and silently uploads a ton of information about your local system to Docker Inc if it should crash (which is easy to trigger accidentally), including pcap logs of your local network, and a list of all running programs on your system, among other massively intrusive things.

Docker Desktop is a privacy nightmare. Always opt for the command line open source docker, and either set DOCKER_HOST="ssh://remote.example.com" in your environment to do remote builds, or run a local VM like this article suggests.