[WSL2] ServerName not working in apache2

[ghost]

Please fill out the below information:

• Your Windows build number: (Type ver at a Windows Command Prompt)
  10.0.19018.1
• What you're doing and what's happening: (Copy&paste the full set of specific command-line steps necessary to reproduce the behavior, and their output. Include screen shots if that helps demonstrate the problem.)

1. in PowerShell: wsl --set-default-version 2
2. in hosts file, add example.test next to localhost
3. install Ubuntu from Windows store
4. sudo apt update && sudo apt upgrade && sudo apt install apache2
5. sudo nano /etc/apache2/sites-available/000-default.conf
6. add ServerName example.test to VirtualHost, save file
7. sudo service apache2 restart
8. try to open example.test in your browser of choice

• What's wrong / what should be happening instead:
  I get the ERR_CONNECTION_REFUSED error. If I open localhost, though, I do see the website I intended to open when I opened example.test
  I'd also like to note that in WSL1 this worked correctly.
• Strace of the failing command, if applicable: (If some_command is failing, then run strace -o some_command.strace -f some_command some_args, and link the contents of some_command.strace in a gist here).
  not applicable
• For WSL launch issues, please collect detailed logs.

[Biswa96]

Is the Apache service running after step 7 and before step 8?

[ghost]

Yes.
I just tried to do what was recommended in #4356, and sadly it did not work either.

[ghost]

Actually no, what is in #4356 does work. It's just that if you add localhost next to 127.0.0.1 in hosts, it overrides WSL and leads to the error.