WSL: VSCode server install fails on Ubuntu 19.10

[aeschli]

Running Windows 10, WSL with Ubuntu 19.10.

The VSCode server install fails when untaring the server: '/bin/gzip: 10: Syntax error: "(" unexpected'

WSL log:

[2019-11-09 01:04:18.721] Starting server: /home/mellowd/.vscode-server/bin/86405ea23e3937316009fc27c9361deee66ffbf5/server.sh --port=0 --fileWatcherPolling=0
[2019-11-09 01:04:18.721] /bin/gzip: 10: Syntax error: "(" unexpected
[2019-11-09 01:04:18.721] tar: Child returned status 2
[2019-11-09 01:04:18.721] tar: Error is not recoverable: exiting now
[2019-11-09 01:04:18.721] /bin/gzip: 10: Syntax error: "(" unexpected
[2019-11-09 01:04:18.721] tar: Child returned status 2
[2019-11-09 01:04:18.721] tar: Error is not recoverable: exiting now
[2019-11-09 01:04:18.721] ERROR: Unpacking failed: Files expected: 0, is 1
[2019-11-09 01:04:18.721] /mnt/c/Users/mellowd/.vscode/extensions/ms-vscode-remote.remote-wsl-0.40.2/scripts/wslServer.sh: 60: /home/mellowd/.vscode-server/bin/86405ea23e3937316009fc27c9361deee66ffbf5/server.sh: not found
[2019-11-09 01:04:18.721] VS Code Server for WSL closed unexpectedly.

[aeschli]

First reported in #1812

The underlying issue is microsoft/WSL#4461.

As workaround please try microsoft/WSL#4461 (comment)