Cannot start WSL Devcontainers when remoted via Tunnels

[JustinGrote]

• VSCode Version: 1.132.0
• Local OS Version: Win11
• Remote OS Version: Win11
• Remote Extension/Connection Type: Tunnels -> WSLC devcontainer
• Logs:

[3299 ms] Dev Containers 0.466.0 over Remote - Tunnels 1.5.3 in VS Code 1.132.0 (df53daabb18cd157bdb08c7f01c34df936cf12f4).
[3299 ms] Start: Resolving Remote
[3304 ms] Start: Loading environment from ExecServer
[3357 ms] Host OS: win32 10.0.26200
[3357 ms] Host CWD: undefined
[3357 ms] USERPROFILE: C:\Users\JGrote
[3357 ms] PATH: undefined
[3555 ms] Start: Run: wsl -l -v
[3619 ms] Could not connect to WSL.
[3619 ms] Command failed: wsl -l -v
[3619 ms] 
[3619 ms] The Windows Subsystem for Linux is not installed. You can install by running 'wsl.exe --install'.
For more information please visit https://aka.ms/wslinstall

[3716 ms] Start: Check Docker is running
[3717 ms] Start: Run: wslc version
[3851 ms] wslc 2.9.4.0
[3856 ms] Start: Run: wslc -v
[4293 ms] Start: Run: wslc build -f C:\Users\JGrote\AppData\Local\Temp\vsch\bootstrap-image\0.466.0\bootstrap.Dockerfile -t vsc-volume-bootstrap C:\Users\JGrote\AppData\Local\Temp\vsch\bootstrap-image\0.466.0
Building image from directory: C:\Users\JGrote\AppData\Local\Temp\vsch\bootstrap-image\0.466.0

[1/8] FROM mcr.microsoft.com/devcontainers/base:0-alpine-3.20@sha256:f1cb8e3d768ee56f9101c8782aac43305d48d4367555cb4c0ebb5a62830feae4
[2/8] COPY host-ca-certificates.crt /tmp/host-ca-certificates.crt
[3/8] RUN cat /tmp/host-ca-certificates.crt >> /etc/ssl/certs/ca-certificates.crt
[4/8] RUN csplit -f /usr/local/share/ca-certificates/host-ca-certificate- -b '%02d.pem' -z -s /tmp/host-ca-certificates.crt '/-----BEGIN CERTIFICATE-----/' '{*}'
[5/8] RUN echo "@old https://dl-cdn.alpinelinux.org/alpine/v3.15/main" >> /etc/apk/repositories
[6/8] RUN apk add --no-cache    git-lfs         nodejs  python3         npm     make    g++     docker-cli      docker-cli-buildx       docker-cli-compose      openssh-client-default@old      ;
[7/8] RUN npm config set cafile /etc/ssl/certs/ca-certificates.crt && cd && npm i node-pty || echo "Continuing without node-pty."
[8/8] COPY .vscode-remote-containers /root/.vscode-remote-containers
exporting to image
  | exporting layers
  | writing image sha256:114ad353736abe91af523197455a5776f6c4988665286df8a7793d3098bb6d92
  | naming to docker.io/library/vsc-volume-bootstrap
[5445 ms] Start: Run: wslc run -d -v dotnet:/workspaces vsc-volume-bootstrap sleep infinity
[6044 ms] Start: Run in container: /bin/sh
[6152 ms] Start: Run in container: cat '/workspaces/dotnet/.devcontainer/devcontainer.json'
[6267 ms] // For format details, see https://aka.ms/devcontainer.json. For config options, see the
// README at: https://github.com/devcontainers/templates/tree/main/src/dotnet
{
        "name": "C# (.NET)",
        // Or use a Dockerfile or Docker Compose file. More info: https://containers.dev/guide/dockerfile
        "image": "mcr.microsoft.com/devcontainers/dotnet:2-10.0-noble"

        // Features to add to the dev container. More info: https://containers.dev/features.
        // "features": {},

        // Use 'forwardPorts' to make a list of ports inside the container available locally.
        // "forwardPorts": [5000, 5001],
        // "portsAttributes": {
        //              "5001": {
        //                      "protocol": "https"
        //              }
        // }

        // Use 'postCreateCommand' to run commands after the container is created.
        // "postCreateCommand": "dotnet restore",

        // Configure tool-specific properties.
        // "customizations": {},

        // Uncomment to connect as root instead. More info: https://aka.ms/dev-containers-non-root.
        // "remoteUser": "root"
}
[6267 ms] 
[6414 ms] Start: Run: wslc volume ls -q
[6611 ms] Start: Run: tar --no-same-owner -x -f -
[7755 ms] Start: Run: wslc rm -f ab65c1946685a9c601ed24e7d50df407fa11fb217ca23921e1a4a4a32ce15093
[7759 ms] Error: The operation was aborted
    at i.<anonymous> (c:\Users\JGrote\.vscode\extensions\ms-vscode.remote-server-1.5.3\dist\node\extension.js:2:909713)
    at Object.onceWrapper (node:events:631:26)
    at i.emit (node:events:521:24)
    at emitErrorNT (node:internal/streams/destroy:170:8)
    at emitErrorCloseNT (node:internal/streams/destroy:129:3)
    at process.processTicksAndRejections (node:internal/process/task_queues:90:21)

Steps to Reproduce:

1. Set up W365 Desktop (or any other windows system)
2. Install latest wsl preview for wslc
3. Enable devtunnel for vscode on remote W365 desktop
4. Configure docker settings to use wlc for devcontainer
5. Connect from source computer, this works fine for devtunnel
6. Choose New Devcontainer and choose C# dotnet container. It will fail
7. Perform the same devcontainer operation locally on the W365 desktop, it will complete successfully.

When doing a process trace it looks like its trying to clear the source computer temp folder. I ensured mine was completely empty and still had the issue.

Does this issue occur when you try this locally?: No
Does this issue occur when you try this locally and all extensions are disabled?: No