By default, Libvirt creates the QXL display adapter with 16MB of RAM which is too little for higher resolutions. Up it to 64MB by editing the VM domain XML and finding this line:
<model type='qxl' ram='65536' vram='65536' vgamem='16384' heads='1' primary='yes'/>
Change the highlighted value to 65536.
Use the following to allow Yubikey/TPM backed SSH keys in WSL
export SSH_SK_HELPER=/mnt/c/Windows/System32/OpenSSH/ssh-sk-helper.exe