Is it a weird path? It's just a simulated computer with hostname wsl$. It looks like this is just a network share server running on the loopback interface. Similarly, \\wsl.localhost\ will also show you your WSL files. The dollar sign has some weird special meaning to the Windows security system (trusted account, local computer, etc., in AD it's related to this mess: https://techcommunity.microsoft.com/t5/core-infrastructure-a...) but it's essentially just a standard Windows UNC paths.