Configuring an "Edit with VIM" context menu in Windows 10 WSL using Registry Editor
Solution 1:
Add an escape character (\) like this:
wslpath '%1' | sed 's| |\\ |g' | xargs vim
What this does is replace all blank with \blank
(meaning with \ ).
This way the blank is escaped and no longer serves as a separator, but just as a normal character within the string.