>WSL2 is not really a VM though, in the traditional sense, as it has full hardware access
It is exactly a VM, and the WSL2 guest does not have full hardware access. The hypervisor can paravirtualize compatible GPUs, but for other hardware (such as USB) this is not possible. Hardware passthrough is also not possible in WSL2.
Sure, however in the traditional sense of most people using VMs, there is no virtualization of GPUs, ie vGPU, and thus no hardware acceleration, if you use something like VMWare or VirtualBox inside Windows. In a hypervisor setup like Proxmox, there is, but the issue is that you need one hardware device per VM, which can get annoying. So paravirtualization via WSL is actually, depending on your needs, superior to either of the previous two cases.
It is exactly a VM, and the WSL2 guest does not have full hardware access. The hypervisor can paravirtualize compatible GPUs, but for other hardware (such as USB) this is not possible. Hardware passthrough is also not possible in WSL2.