Select "Programs" from the control panel, select "Turn Windows features on or off", and restart.
Start PowerShell and run wsl --update
Similar symptoms have been reported as bugs even when using the Windows Insider Program. If you are using the evaluation version of the insider program and the above solution does not work, you may try the solution in issues on github below. When installing a distribution the process fails with: "WslRegisterDistribution failed with error: 0x800706be. #5768
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