The mount is fine and speedy enough, but the underlying reads/writes turn into native NTFS reads/writes through Windows. NTFS file API is incredibly slow - high fixed overhead for initial file access.
So patterns like node_modules with many small individual files (or compiling code in general) are much much slower on Windows or WSL2 /mnt/c due to the fixed overhead adding up over a large number of files.
It's a ridiculous problem that has plagued Windows for years.