When moving from WSL1 to WSL2 many things change; apparently this applies to X11 forwarding as well.
What steps do I need to make in order to use X11 forwarding with WSL
For some people who allowed only for private networks like me,
It should have stop signs on Windows Defender firewall
Double click it and allow the connection for both
So all the 4 items should be ticked green.
and the above answer from @NicolasBrauer was working for me.
Disable the access control when you XLaunch and
export DISPLAY=$(awk '/nameserver / {print $2; exit}' /etc/resolv.conf 2>/dev/null):0
export LIBGL_ALWAYS_INDIRECT=1