Thanks again Petter. I found a work-around. Someone suggested it at < https://superuser.com/a/1922859>. However, due to corporate policy (no network for WSL-2), I had to modify it a bit:
1. Open Debian VM. It is WSL-1 2. Run `sudo apt-get update`. WSL-1 is allowed on the network 3. Close Debian VM 4. In Windoze cmd prompt run `wsl --set-version Debian 2`. Convert to WSL-2 5. Open Debian VM. It is WSL-2 6. Run `sudo apt-get upgrade`. WSL-2 file locks work 7. Close Debian VM 8. In Windoze cmd prompt run `wsl --set-version Debian 1`. Convert to WSL-1 9. Open Debian VM. It is WSL-1 again

