Graphical interface won't work well inside WSL, that's why I dropped my subscription on GitKraken and start using lazygit. lazygit simply works in almost any environment, and it works extremely well even if you are not into terminal stuff.
(By “works anywhere”, I meant you can use it with any IDE or editor, or just run it from terminal, though it is cross-platform and should work on Windows, just not sure how well it would play with WSL.)
Maybe you’re saying that you wish VSCose itself was a TUI?
There’s a lot of decent TUI editors nowadays though, and with LSP they’re pretty on-par with vscode. Maybe try Micro? https://micro-editor.github.io/
I would never try running any graphical stuff in WSL anymore, not worth it. VMWare with a graphical installation of any Linux system would be a preferred choice as I'm testing lately.