The issue was due to the Virtualization Extension is not enable by default. Every time I tried running WSL after installing the WSL package, i am getting an error that Virtualization is not enabled on BIOS. I think this is a default error. It will not say to you, "Opps, you are running under Hyper-V, enable it first". So after several google, you have to invoke the command as Admin via power shell.
Command:
wsl --helpSet-VMProcessor -VMName mytestmv01 -ExposeVirtualizationExtensions $true
where mytestvm01 is the name of the VM i need to enable WSL and needs virtualization (seems like nested) extension like you do on your bios for none virtualized machine.
Then reconnect to your VM, you should be able to run now your WSL, ubuntu or what ever flavor of linux you like to enable or install that is available from MS.
