Had the same problem. Not just WSL. Hyper-V breaks as well as Oracle Virtual Box. All virtualisation tools seem to be compromised by spacedesk_driver_Win_10_64_v1027_BETA.
I was lucky I had a system restore point before I installed spacedesk_driver_Win_10_64_v1027_BETA. Simply uninstalling SpaceDesk does not fix Hyper-V and related software components.
