How to get WSL2 working inside a Hyper-V virtual machine

If you have problems running WSL2 after installing it inside a virtual machine running on Hyper-V you need to enable nested virtualization.

The error looks something like this:

Error: 0x80370102 The virtual machine could not be started because a required feature is not installed.

This can be fixed by running this command on the Hyper-V host

set-VMProcessor -VMName "My virtual machine name" -ExposeVirtualizationExtensions $true