That's not my experience with VS Code on WSL 2. I have been using it for months using the remote extension, hosting my git repos in the Ubuntu subsystem, it works like a charm and feels very responsive.
Maybe wait for an IDE update that handles properly WSL 2?
Then there is no WSL 2 handling in your editor. VSCode remote extension works in the same way for either WSL 2, or a full-fledged Linux VM, or even a remote Linux server.
As someone who run a Linux VM side by side all times, I really don't get WSL 2.
VSCode made some unique design choices which enable them to support connecting to any Linux server, VM or not. In contrast, these design choices may not be possible for other IDEs. So, because WSL 2 is, effectively, a Linux VM, supporting it in editor is harder than supporting WSL 1.
As for "I really don't get" part, I wanted to say that WSL 2 sounds like a regression to me, WSL 1 makes it possible to achieve something (namely, local-ish cross-"os" net/process/file-system integration) that is entirely impossible otherwise, while WSL 2 is a nice packaged-up solution but functionally does not do more than people already get (Hyper-V).
One thing that's very valuable to me in WSL (both 1 and 2) is the automagic network settings that make ports available between systems - so if I start listening on 127.0.0.1:1234 in Linux, I can connect to that on Windows and vice versa.
Maybe wait for an IDE update that handles properly WSL 2?