WSL2 fails HCS_E_HYPERV_NOT_INSTALLED on Windows 11 25H2 26200.9457 although HypervisorPresent=True; HCS fails with ERROR_INVALID_HANDLE in capabilityhelpers.cpp

Windows Version

Windows 11 Home 25H2 OS Build 26200.9457

CPU

AMD Ryzen 7 7840HS

WSL Version

2.7.14.0

Problem

WSL2 cannot create any VM/distro.

wsl --install Ubuntu fails with:

Wsl/InstallDistro/Service/RegisterDistro/CreateVm/HCS/HCS_E_HYPERV_NOT_INSTALLED

Error code: 0x80370102

Hypervisor status

The Windows hypervisor is definitely running:

systeminfo: Hyper-V Requirements: A hypervisor has been detected.

(Get-CimInstance Win32_ComputerSystem).HypervisorPresent True

VirtualizationFirmwareEnabled True

VBS: Running

bcdedit: hypervisorlaunchtype Auto

Required Windows components

VirtualMachinePlatform: Enabled HypervisorPlatform: Enabled Microsoft-Windows-Subsystem-Linux: Enabled

Services:

vmcompute: Running wslservice: Running hvservice: Running

Other virtualization software

VirtualBox 7.2.10 was installed.

VBoxSup.sys was previously running, but was explicitly disabled and the system was rebooted.

WSL failure remains unchanged with VBoxSup disabled.

Important additional finding

hcsdiag hostproperties processortopology

returns:

0x8000FFFF (E_UNEXPECTED / catastrophic failure)

hcsdiag hostproperties cpugroup

returns no CPU groups but exits with code 0.

ETL findings

The attached WSL ETL trace shows that the first concrete failure inside vmcompute occurs here:

onecore\vm\compute\management\shared\compute\capabilityhelpers.cpp(258)

Error: 0x80070006 ERROR_INVALID_HANDLE

The same error is then propagated through:

src\windows\common\hcs.cpp(109) wslservice.exe

After that vmcompute reports:

vmcommonhelpers.cpp(226) 0x80370102

CallContext: [HcsRpc_CreateSystem\ComputeSystemManager_Create\VirtualMachine_Construct]

Finally HCS reports:

Cannot create system since Hyper-V is not installed on the host.

This appears to be a secondary/mapped error, because the earlier failure is ERROR_INVALID_HANDLE inside vmcompute capability handling.

Expected behavior

WSL2 should create the utility VM successfully.

What has already been tried

• BIOS virtualization verified enabled
• VirtualMachinePlatform enabled
• HypervisorPlatform enabled
• WSL enabled
• hypervisorlaunchtype Auto
• multiple reboots
• DISM /Online /Cleanup-Image /RestoreHealth
• sfc /scannow
• netsh winsock reset
• VBoxSup disabled + reboot
• WSL reinstall/update attempts

The Windows hypervisor is currently detected and running, but HCS fails when creating the VM.

Question

What does ERROR_INVALID_HANDLE in vmcompute.exe!capabilityhelpers.cpp(258) indicate in this context?

Why does HCS report HCS_E_HYPERV_NOT_INSTALLED when HypervisorPresent=True and the hypervisor is demonstrably running?

Could this be a Windows 11 25H2 / 26200.x HCS regression or servicing/component issue?