Are you using WSL1 or WSL2? What is the Windows 10 version (please give the exact version/build, not latest or most recent update please!)

I've not actually been able to reproduce this here, but I know it happens as it's reported multiple times with multiple distros. For me, both WSL1 and WSL2 installed 2.31-2 (and -3) without issue. I don't have a bootcamp setup though I doubt that has to do with anything.

I see 2.31-3 coming in the pipeline, perhaps that will fix the issue for you when it arrives.

winver:

Version 1903 (OS Build 18362.1016)

Is there any way you could update to 2004? If Windows Update claims there is no update available, it's likely being blocked because OneDrive is installed separately, and you can uninstall OneDrive and then the update should show up as available.

I can't reproduce the sleep issue on any of my machines, but they're all on 2004+ at this point, and I would urge you to update to it as well at this point.

I updated to Version 2004 (OS Build 19041.450), still no dice.

According to the Microsoft document (https://docs.microsoft.com/en-us/windows/wsl/compare-versions), WSL is not supported at all on builds lower than 19041; however, I was able to install it on Version 1903 (OS Build 18362.1016) using the command: Enable-WindowsOptionalFeature -Online -FeatureName Microsoft-Windows-Subsystem-Linux.

Perhaps uninstalling then reinstalling WSL and Kali will work.

I have the same issue with my AMD systems as well. Have tried it multiple times on two separate systems with both WSL and WSL2.

Soon as I install the app and it does the initial configuration (new user, password, confirm password), I attempt to run:
sudo apt update <-- works fine.
sudo apt upgrade <-- fails.

I attached a screenshot of the "sudo apt upgrade" run with the error after a fresh install.

Here's the whole story:
I left my computer by my living room window for the night. Battery was exhausted the next morning -odd because Macs have a very good sleep function. First red flag.

I booted into Ubuntu and an EFI error report was generated. Second red flag. Prior to this crash, suspend was the only state that misbehaved. Now, if the computer is powered off or suspended you have to disconnect the battery then connect it again, plug-in the power cord and press the power button to boot. Also, if you tap the power button while the computer is turned on it immediately powers off -no software dialog asking the user to power off.

Running Apple's diagnostics through the recovery software detects a System Management Controller issue (Reference Code: PFM006) & a power management system issue (Reference Code: PPN001). Third red flag. Also, now my battery is reporting a 'replace now'. BTW this all happened around the same time Apple released their update on Catalina. The major change I noticed was my new EFI version. Fourth red flag. I wish I backed-up my prior version! Needless to say, I was not anticipating this event to occur.

My best estimation is that either bloatware is making its way into EFI software or somebody thinks they are smart somewhere but in reality they are causing more problems than good. Have you ran a diagnostic on the hardware?