wslg: Can't open display: :0 + X11 server is not running

Environment

Windows build number: Microsoft Windows [Version 10.0.22000.282]
Your Distribution version: Ubuntu 20.04
Your WSLg version: 1.0.26

Steps to reproduce

Problem 1: Can't open display: :0

1. Update WSL2 (through wsl --update in windows terminal) and before that make sure "Virtual Machine Platform", "Windows Hypervisor Platform" and "Windows Subsystem for Linux" are turned on in Windows Features.
2. Install Intel GPU driver for WSL (Note: CsProcessors: {Intel(R) Celeron(R) N4000 CPU @ 1.10GHz}, Integrated GPU: {Intel(R) UHD Graphics 600} and no dedicated gpu)
3. Run sudo apt update && sudo apt upgrade in wsl terminal
4. Install x11-apps
5. Run xcalc or xeyes in windows terminal through wsl xeyes. (Note: when I run xeyes on wsl terminal, it just hangs for a long time and not show up any app)

Result: Error: Can't open display: :0

Problem 2: X11-server is not running

1. Run ls /tmp/.X11-unix

Result: show no results, and thus suspect X11-server not running.

WSL logs:

• Attach WSLg logs from /mnt/wslg
  You can access the wslg logs using explorer at: \\wsl$\<Distro-Name>\mnt\wslg (e.g.: \\wsl$\Ubuntu-20.04\mnt\wslg)

• pulseaudio.log
  pulseaudio.log

• weston.log
  weston.log

• versions.txt
  versions.txt

Other logs info:

tys@DESKTOP-SDACRC6:/$ echo $DISPLAY
172.26.48.1:0.0

tys@DESKTOP-SDACRC6:~$ ls -la /tmp/.X11-unix
lrwxrwxrwx 1 tys tys 19 Nov  5 10:26 /tmp/.X11-unix -> /mnt/wslg/.X11-unix

tys@DESKTOP-SDACRC6:/mnt/c/Users/tys$ ls -la /tmp/.X11-unix/
total 0
drwxrwxrwx 2 root root  60 Nov  5 10:29 .
drwxrwxrwt 6 root root 260 Nov  5 10:13 ..
lrwxrwxrwx 1 tys  tys   19 Nov  5 10:29 .X11-unix -> /mnt/wslg/.X11-unix

Expected behavior

GUI running without need of other third-party X11-servers such as Vcxsrv.

Actual behavior

Error: Can't open display: :0. Still needs Vcxsrv to open linux gui apps.

Start by reviewing the attached pulseaudio.log, weston.log, and versions.txt under /mnt/wslg, then compare DISPLAY with the /tmp/.X11-unix symlink and directory output. Reproduce with xeyes or xcalc after the stated WSL and x11-apps setup; done means identifying why WSLg cannot open the display without Vcxsrv and documenting or fixing that behavior.