CLI hanging forever in WSL

For some reason, the devcontainer cli only works when called from the context of a windows path. When called from home `~`, it hangs forever. This was however working just fine before yesterday, no idea what triggered it..


devcontainer 0.40.0
WSL2 / Windows 10 (KB5025367)

I've tried rebooting, wsl --shutdown, updating vscode, wiping `ms-vscode-remote.remote-containers` folder and reinstalling, resetting the path, I'm out of ideas.