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Loads of quant and HFT funds run their trading software on Windows.

Loads of people do silly things :-) In all seriousness use the best tool for the task at hand, but Linux is easier to fine tune for demanding loads.

Can you name some, I'm curious. I assume you mean the actual trading software not just the UIs?

WSL is linux. HyperV runs windows and linux as guests.

It’s only slower if you trigger many world switches.

or windows update

Right? Windows should never even come into your mind. Always think Linux.