Microsoft announced today that a fix for the ‘Element not found’ error in the Windows Subsystem for Linux 2 would be released shortly in an upcoming servicing release. The fix should be included in the next 20H2 servicing release shortly, Microsoft stated in a blog post. Insiders who wish to be unblocked immediately can uninstall this build (KB4571756) which is a non-security update. Microsoft also gave a tutorial on how to uninstall, pause, or block Windows updates if they cause issues.
Source: https://www.bleepingcomputer.com/news/microsoft/microsoft-fix-for-windows-subsystem-for-linux-2-error-coming-soon/