>With WSL2 I got rid of VM's for local development.
No you didn't, you just let Windows hide them from you. WSL2 is essentially a Hyper-V VM running Linux with some programs bridging between it and the Windows host -- or two such VMs with some additional bridging (for Wayland and audio) if WSLg is enabled.
Cross OS filesystem performance is poor. The solution is to keep everything within WSL. Code stored, built & edited in WSL.
VSCode + WSL extension makes it possible to "edit" from host without loosing performance.