After spending a lot of time trawling around forums and issues, trying various commands, I stumbled upon this comment in an issue which solves the problem for me (and now hopefully others running Windows 11 with WSL 2).

TL;DR:

sudo sh -c "echo -1 > /proc/sys/fs/binfmt_misc/WSLInterop-late"

Please let me know if there's any changes you'd like, but it would be good to see this in the README as it can hopefully save someone else a lot of internet searching. 😄

NOTE: To those who use VS Code under Windows and do cross-development within WSL2 - you will notice the code command will fail with the following error after executing the above command to disable WSL Interoperability.

/mnt/c/Users/MyUsername/AppData/Local/Programs/Microsoft VS Code/bin/code: 61: /mnt/c/Users/MyUsername/AppData/Local/Programs/Microsoft VS Code/Code.exe: Exec format error

To re-enable WSL Interoperability, run the following command:

sudo sh -c "echo ':WSLInterop:M::MZ::/init:PF' > /proc/sys/fs/binfmt_misc/register"

This should be included in the docs as well.