With 1.20.0 you can grow (but not shrink) the disk size simply by creating an override.yaml
file:
echo "disk: 200GB" >"$HOME/Library/Application Support/rancher-desktop/lima/_config/override.yaml"
Or on Linux:
echo "disk: 200GB" >"$HOME/.local/share/rancher-desktop/lima/_config/override.yaml"
Once you restart the disk will grow automatically.
See also ddev/ddev#7592