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wsl --update --pre-release fails with Error 1603 (WSLService could not be stopped) and wsl --shutdown hangs #40994

Description

@ioweb-gr

Windows Version

Windows 10.0.22631.6199

WSL Version

2.7.10.0

Are you using WSL 1 or WSL 2?

  • WSL 2
  • WSL 1

Kernel Version

6.18.33.2-2

Distro Version

Ubuntu 20.04 (WSL2)

Other Software

Docker Desktop (with WSL2 backend integration)

Repro Steps

Run an active WSL2 background engine context using Docker Desktop integration.

Attempt to trigger a core subsystem preview update by executing:
PowerShell

wsl --update --pre-release

The installer detects preview version 2.9.3, but terminates abruptly with an explicit service-stop failure.

Try to clean up the environment manually by initiating a subsystem halt:
PowerShell

wsl --shutdown

The terminal hangs indefinitely on the execution of the shutdown command.

Expected Behavior

The updater should safely trigger an inner component intercept, signal active distributions to store runtime cache, stop WSLService gracefully, apply the version update payload (2.9.3.0), and wsl --shutdown should close all background VM endpoints within a few seconds without locking up the terminal.

Actual Behavior

The installer fails with an immediate execution denial:

Service 'WSL Service' (WSLService) could not be stopped. Verify that you have sufficient privileges to stop system services.
Update failed (exit code: 1603).
Error code: Wsl/UpdatePackage/ERROR_INSTALL_FAILURE

Subsequent calls to wsl --shutdown hang indefinitely, indicating that an internal deadlock is maintaining persistent handles on the virtualization layers and preventing WSLService from unmounting.

Diagnostic Logs

According to the verbose installer trace from wsl-install-logs.txt:

=== Verbose logging started: 4/7/2026  14:49:55
Product: C:\Users\gabtz\AppData\Local\Temp\wsl.2.9.3.0.x64.msi
Installation success or error status: 1603.
MainEngineThread is returning 1603

The installer engine trips during the transaction context sequence when background host workers or Docker desktop handles fail to safely detach from the operational stack, throwing a hard 1603 block.

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