I’ve read that systemd-homed can do encrypted home directories but I haven’t tried it, much less on WSL but that may get you to achieve the encrypted home directory at least.
Personally I don’t think I would have a need to encrypt all of WSL, but maybe that also makes sense for your case.
ArchWiki example: https://wiki.archlinux.org/title/Systemd-homed
How does the immutability come into play with Nitrux vs, say NixOS?