WSL 2 not working after installing 20262

If anybody hoped it is fixed in the build 20324, rest assured it isn't. 

The command

PS C:\Users\Administrator> wsl --set-default-version 2

still just outputs the same as the command bellow

wsl --help

and doesn't switch to mode 2

PS C:\Users\Administrator> wsl --status
Default Version: 1

Windows Subsystem for Linux was last updated on 4/2/2021
The Windows Subsystem for Linux kernel can be manually updated with 'wsl --update', but automatic updates cannot occur due to your system settings.
To receive automatic kernel updates, please enable the Windows Update setting: 'Receive updates for other Microsoft products when you update Windows'.
For more information please visit https://aka.ms/wsl2kernel.

Kernel version: 5.4.72

LubomirH I can verify that build 20313 it is still broken.  I landed here trying to figure out what had gone wrong and what the triage was.  I'm in the same boat as you as my working WSL2 compatible version expired on 1/31 and now won't start up.

This is frustrating as all get out.

LubomirH would be nice if someone at MS just explained the situation. i.e. we don't plan to introduce until after GA or its still being planned or its unsupported at the moment but you can fudge it by X etc.