Just to follow up, i have done the upgrade to windows 10 version 17063,
and the bug is fixed, this should probably be marked as resolved by
Microsoft and the WSL team
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Been researching this issue, seems it's fixed in windows insider build
17046 and later
Reference issue:
https://github.com/Microsoft/WSL/issues/1878
Reference comment:
https://github.com/Microsoft/WSL/issues/1878#issuecomment-350325140
** Bug watch added: github.com/Microsoft/WSL/issues #18
Public bug reported:
Installing 18.07 on WSL using do-distribution-upgrade -d
ProblemType: Package
DistroRelease: Ubuntu 16.04
Package: bash 4.3-14ubuntu1.2
ProcVersionSignature: Microsoft 4.4.0-43-Microsoft 4.4.35
Uname: Linux 4.4.0-43-Microsoft x86_64
ApportVersion: 2.20.1-0ubuntu2.10
Architect