Virtualization is not working anymore after installing WSL on the host

Try disabling hyper-v virtualization through bcdedit.

You will probably not be able to do both WSL2 and VMWare stuff at the same time.

EDIT: Mr. @Ramhound had this to say (and he is almost never wrong)

VMWare and Hyper-V should be able to coexist on the same system, certainly, the version of VMWare should allow it.

Do you REALLY NEED WSL2 vs WSL1? WSL1 doesn't require virtualization. I myself use WSL1 and the ONLY THING that it can't do for me is mount other file systems or run kernel mode stuff like docker. The I/O is also a little slow (but mostly unnoticeable).

Search google for "disable virtualization bcdedit".

I myself use the boot menu that allows me to turn it on or off at boot time. You will find that in your search if that is what you seek.

I use VirtualBox and some of the microsoft virtualization technologies and they don't like each other so I need the ability to turn it on or off.

I hope this solves your problem.