Simon, great job on describing the (murky) waters of using Windows Subsystem for Linux for RedwoodJS development on Windows. I spent a good amount of time trying to write an alternative version on RedwoodJS application development on Windows - and missed addressing the RedwoodJS framework development which requires using the Windows Subsystem for Linux, because of all scripts used in the framework development.
My current proposal - Testing and Debugging Project is dedicated to Redwood application developers so I am skipping WSL 2 use completely and using VSCode to handle all of the platform (MacOS, Linux and Windows) specific issues.