ERROR: CreateProcessCommon:717: chdir(/mnt/c/WINDOWS/system32) failed 2

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### Windows Version

Microsoft Windows [10.0.19045.5854]

### WSL Version

2.5.7.0

### Are you using WSL 1 or WSL 2?

- [x] WSL 2
- [ ] WSL 1

### Kernel Version

_No response_

### Distro Version

Ubuntu 22.04

### Other Software

_No response_

### Repro Steps

just type "wsl"

> C:\WINDOWS\system32>wsl
<3>WSL (757 - Relay) ERROR: CreateProcessCommon:717: chdir(/mnt/c/WINDOWS/system32) failed 2

### Expected Behavior

The expected behavior is like WSL with path parameters added: No error exists

>C:\WINDOWS\system32>wsl ~
johnny@vv:~$ exit

### Actual Behavior

I can understand this error "CreateProcessCommon:717: chdir(/mnt/c/WINDOWS/system32) failed 2", because on my system, the correct case-sensitive path looks like this:

> johnny@vv:/$ cd /mnt/c/WINDOWS/system32
-bash: cd: /mnt/c/WINDOWS/system32: No such file or directory
johnny@vv:/$ cd /mnt/c/Windows/System32
johnny@vv:/mnt/c/Windows/System32$

It doesn't seem like WSL gets the correct case-sensitive path, if the path parameter isn't explicitly appended and WSL needs to get the working path by itself.

Importantly, this error path appears to be coming from windows, and when I open Prompt or Power Shell as an Administrator, the system gives us the wrong case path at the beginning :

> C:\WINDOWS\system32>cd \windows\system32
C:\WINDOWS\system32>cd \
C:\>cd WINDOWS
C:\Windows>cd system32
C:\Windows\System32>

Hopefully WSL will consider that this will happen with Windows and correct it.

### Diagnostic Logs

_No response_

Reproduce the issue from C:\WINDOWS\system32 with WSL 2 and Ubuntu 22.04, then compare it with starting WSL using the ~ path parameter. Investigate how the Windows working directory is converted to the Linux path, especially when Windows reports different casing; done means launching wsl without an argument produces no chdir error.

Written by the indexing model from the issue text.