%USERPROFILE%\.wslconfig stores settings for Windows/Subsystem-for-Linux[WSL] (only version 2?) globally, i.e. for all installed distributions.
# Settings apply across all Linux distros running on WSL 2
[wsl2]
# Limits VM memory to use no more than 4 GB, this can be set as whole numbers using GB or MB
memory=4GB
# Sets the VM to use two virtual processors
processors=2
# Specify a non-default Linux kernel (for example after compiling one).
# The default kernel used can be found at https://github.com/microsoft/WSL2-Linux-Kernel
# The default location for the kernel is %SystemRoot%\system32\lxss\tools\\kernel
# In at least one WSL installation, I have found the value of kernel to be C:\\Users\\username\\dxg-ioctl.
kernel=C:\\temp\\myCustomKernel
# Sets additional kernel parameters, in this case enabling older Linux base images such as Centos 6
kernelCommandLine = vsyscall=emulate
# Sets amount of swap storage space (the default being 25% of available RAM)
# and the swap file's path location (the default being %USERPROFILE%\AppData\Local\Temp\__GUID__\swap.vhdx)
swap = 8GB
swapfile = C:\\temp\\wsl-swap.vhdx
# Disable page reporting so WSL retains all allocated memory claimed from Windows and releases none back when free
pageReporting=false
# Turn off default connection to bind WSL 2 localhost to Windows localhost
localhostforwarding=true
# Disables nested virtualization
nestedVirtualization=false
# Turns on output console showing contents of dmesg when opening a WSL 2 distro for debugging
debugConsole=true
# Uncomment to turn off support for GUI applications in WSL:
# guiApplications=False
# Mirrored networking improves compatibility with complex networking environments,
# especially VPNs and more, as well as adding support for new networking features
# unavailable in the default NAT mode like IPv6:
# networkingMode=mirrored
# dnsTunneling=true
# Use Window's proxy information.
# Recommended to set to true if a proxy
# is configured in Windows.
# autoProxy=true
# Enabling/disabling core dumps and
# specifying their directory (the default being C:\Users\username\AppData\Local\Temp\wsl-crashes\):
# MaxCrashDumpCount = -1
# crashDumpFolder = C:\\Path\\to\\crash-dump-directory
See also
Settings for a particular distribution go into /etc/wsl.conf.