WSL 2.7.10 fails to create Utility VM on Windows 11 25H2 (Build 26200.8037) with WSL/Service/CreateInstance/CreateVm/HCS/ERROR_FILE_NOT_FOUND

### Windows Version

Windows 11 25H2 (Build 26200.8037)

### WSL Version

2.7.10

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

- [x] WSL 2
- [ ] WSL 1

### Kernel Version

6.18.33.2-2

### Distro Version

Ubuntu-22.04

### Other Software

# WSL 2.7.10 fails to create Utility VM on Windows 11 25H2 (Build 26200.8037) with `WSL/Service/CreateInstance/CreateVm/HCS/ERROR_FILE_NOT_FOUND`

## Summary

After upgrading to **Windows 11 Home 25H2 (OS Build 26200.8037)**, WSL is unable to start any Linux distribution. Every invocation of WSL fails immediately with:

```text
The system cannot find the file specified.

Error code:
WSL/Service/CreateInstance/CreateVm/HCS/ERROR_FILE_NOT_FOUND
```

The failure occurs before the Utility VM is created or the Linux distribution begins to boot.

---

## Environment

### Windows

* Edition: Windows 11 Home
* Version: 25H2
* OS Build: 26200.8037

### WSL

* WSL version: 2.7.10.0
* Linux kernel: 6.18.33.2-2
* WSLg: 1.0.73.2
* MSRDC: 1.2.6676
* Direct3D: 1.611.1-81528511
* DXCore: 10.0.26100.1

### Host Compute Service

* vmcompute.exe version: 10.0.26100.7920

---

## Reproduction

Running any of the following commands:

```text
wsl
```

```text
wsl --system
```

```text
wsl --debug-shell
```

always produces:

```text
The system cannot find the file specified.

Error code:
WSL/Service/CreateInstance/CreateVm/HCS/ERROR_FILE_NOT_FOUND
```

The behavior is completely reproducible after every reboot.

---

## Expected Behavior

The default Ubuntu-22.04 distribution should start normally.

---

## Actual Behavior

WSL terminates before creating the Utility VM.

No Linux process starts, and the distribution never begins booting.

---

## Distribution Status

The Ubuntu installation is still registered.

```text
wsl --list --verbose

Ubuntu-22.04 Stopped Version 2
```

Registry entries remain present under:

```text
HKCU\Software\Microsoft\Windows\CurrentVersion\Lxss
```

The distribution points to a valid `ext4.vhdx`, which remains present and intact (approximately 121 GB). A verified backup of the VHD has also been created.

---

## Virtualization Status

Virtualization is enabled in firmware.

PowerShell reports:

```text
HypervisorPresent : True
```

Boot configuration:

```text
hypervisorlaunchtype Auto
```

Enabled Windows features:

* Microsoft-Windows-Subsystem-Linux
* VirtualMachinePlatform
* HypervisorPlatform

---

## Host Compute Service

The Host Compute Service appears healthy.

* `vmcompute` is running.
* `hcsdiag` executes successfully.
* `hcsdiag hostproperties processortopology` returns the expected processor topology.
* `hcsdiag list` completes successfully but reports no running compute systems.

This suggests that VM creation fails before a Utility VM is successfully registered.

---

## WSL Installation Verification

The Microsoft Store version of WSL appears complete.

The following components are present under `C:\Program Files\WSL`:

* wsl.exe
* wslservice.exe
* wslhost.exe
* libwsl.dll
* kernel
* init
* initrd.img

No installation files appear to be missing.

---

## Troubleshooting Already Performed

Before opening this issue, I completed the following troubleshooting steps:

* Rebooted the system multiple times.
* Updated WSL.
* Verified virtualization support in firmware.
* Verified `hypervisorlaunchtype Auto`.
* Verified required Windows optional features are enabled.
* Verified the Hyper-V Host Compute Service is running.
* Verified WSL binaries and kernel installation.
* Verified Ubuntu registry configuration.
* Verified the integrity and presence of the Ubuntu `ext4.vhdx`.
* Created a complete backup of the Ubuntu VHD.
* Performed **two separate in-place Windows repair upgrades** using the official Windows 11 25H2 ISO while preserving applications and personal files.

Neither repair installation changed the behavior.

---

## Observation

Based on the diagnostics collected so far, the failure appears to occur during the Host Compute Service `CreateVm` operation.

The Utility VM never appears in:

```text
hcsdiag list
```

which suggests the failure occurs before VM registration. This is an observation from the collected diagnostics rather than a confirmed root cause.

---

## Diagnostics

Attached:

`WslLogs-2026-07-13_13-46-24.tar.gz`

This archive was collected using the official Microsoft WSL diagnostic collection script immediately after reproducing the failure.

---

## Request

Could you please advise whether this corresponds to a known regression in Windows 11 25H2 (Build 26200.8037), WSL 2.7.10, or the Host Compute Service?

If additional ETW traces, HCS diagnostics, private symbols, or experimental builds would help isolate the missing resource responsible for `CreateVm/HCS/ERROR_FILE_NOT_FOUND`, I would be happy to collect and provide them.

Thank you for your time and for maintaining WSL.

### Repro Steps

wsl --version
WSL version: 2.7.10.0
Kernel version: 6.18.33.2-2
WSLg version: 1.0.73.2
MSRDC version: 1.2.6676
Direct3D version: 1.611.1-81528511
DXCore version: 10.0.26100.1-240331-1435.ge-release
Windows version: 10.0.26200.8037
PS C:\WINDOWS\system32> wsl --status
Default Distribution: Ubuntu-22.04
Default Version: 2
PS C:\WINDOWS\system32> wsl --list --verbose
NAME STATE VERSION
* Ubuntu-22.04 Stopped 2
PS C:\WINDOWS\system32> wsl
The system cannot find the file specified.
Error code: Wsl/Service/CreateInstance/CreateVm/HCS/ERROR_FILE_NOT_FOUND cd C:\WSLDiagnostics
PS C:\WSLDiagnostics> Invoke-WebRequest `
>> -UseBasicParsing `
>> "https://raw.githubusercontent.com/microsoft/WSL/master/diagnostics/collect-wsl-logs.ps1" `
>> -OutFile collect-wsl-logs.ps1
PS C:\WSLDiagnostics> dir

Directory: C:\WSLDiagnostics

Mode LastWriteTime Length Name
---- ------------- ------ ----
-a---- 7/13/2026 1:44 PM 17275 collect-wsl-logs.ps1

PS C:\WSLDiagnostics> Set-ExecutionPolicy Bypass -Scope Process -Force
PS C:\WSLDiagnostics> .\collect-wsl-logs.ps1
Log collection is running. Please reproduce the problem and once done press any key to save the logs.
Saving logs...
100% [>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>]
Logs saved in: C:\WSLDiagnostics\WslLogs-2026-07-13_13-46-24.tar.gz. Please attach that file to the GitHub issue.

### Expected Behavior

The default Ubuntu-22.04 distribution should start normally.

### Actual Behavior

Actual Behavior

WSL terminates before creating the Utility VM.

No Linux process starts, and the distribution never begins booting.

### Diagnostic Logs

[WslLogs-2026-07-13_13-46-24.tar.gz](https://github.com/user-attachments/files/29970778/WslLogs-2026-07-13_13-46-24.tar.gz)

Start by reviewing the attached WslLogs-2026-07-13_13-46-24.tar.gz and reproducing the failure with wsl, wsl --system, and wsl --debug-shell. Compare the diagnostics around CreateVm/HCS/ERROR_FILE_NOT_FOUND to determine whether the failure is in WSL, Windows 11 25H2, or Host Compute Service; done means identifying a confirmed cause or a narrowly reproducible regression.

Written by the indexing model from the issue text.