Executables that access the WSL disks fail to open

[t12nslookup]

Environment

Microsoft Windows [Version 10.0.19042.844]
Release: Ubuntu 20.04
Linux version 5.4.72-microsoft-standard-WSL2 (oe-user@oe-host) (gcc version 8.2.0 (GCC)) #1 SMP Wed Oct 28 23:40:43 UTC 2020

Steps to reproduce

1. Open WSL
2. cd into a Linux directory, rather than /mnt/c/Users ...
3. type "explorer.exe ." to open Windows explorer at the current directory

WSL logs:

Expected behavior

Windows explorer opening in the specified location

Actual behavior

Windows explorer fails to open, and the system fails to return the prompt.

Additional Information

If you start "explorer.exe" from the /mnt/c/Users ... directory everything starts fine.

I cannot access the \\wsl$\Ubuntu-20.04 from within Windows.

A complete shutdown using wslconfig, and a shutdown and restart of windows both failed to fix this.

[t12nslookup]

Just applied the latest batch of windows updates, and this is now working again (mostly .net, but at least 1 feature update)