How to fix the broken kali WSL
Fairly recently there was an update to Kali Linux and the Distribution name changed. This causes WSL to not even see/forget that you installed Kali Linux in WSL.
This is simple to fix:
wslconfig.exe /setdefault kali-rolling
Once done, you can do:
apt update && apt upgrade -y && apt dist-upgrade -y
Once you have done this everything in your Kali Linux WSL install will work as intended and you should be up to date.
If you find errors feel free to use the contact tab to get in touch.
You can now continue to do your penetration testing and security assessments as usual.
There is a lot of bad information revolving around this. Please be careful of the TRAP.