Something definitely changed along the way; see changelog of BIOS update!
What's the exact pc/laptop model?

If that's not the case then it might be some setting/update in Win11 that broke it.

gil said:
regardless of WSL, I find it odd the virtualization enabled is messing up the boot
It is odd.
Without virtualization WSL won't even load.

I'm no user of WSL myself but I would suggest you double check the BIOS settings: try to restore defaults and see if it works that way. If not, tweak again, if virtualization is disabled. Are there any other related settings to virtualization? If this is on AMD then you need SVM or something similar and IOMMU just in case. Then on Windows side: disable WSL entirely, reboot, re-enable WSL and try again.