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Cannot start Hyper-V Host Compute Service

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I'm trying to install Docker with WSL 2 on my Windows 10 machine. I thought it was fairly simple but two days later I'm still struggling to make it work.

I've tracked the problem from not being able to install a Linux Distribution from the Windows Store. I'm getting an error:

WslRegisterDistribution failed with error: 0x80370102Error: 0x80370102 The virtual machine could not be started because a required feature is not installed.

After some more troubleshooting it is (probably) because I can't run this Hyper-V Host Compute Service:

PS C:\Users\jjj> Start-Service "Hyper-V Host Compute Service"Start-Service : Service 'Hyper-V Host Compute Service (vmcompute)' cannot be started due to the following error: Cannot open vmcompute service on computer '.'.

In Windows Event Viewer I get this:

The Hyper-V Host Compute Service service depends on the Windows Container Isolation service which failed to start because of the following error:The system cannot find the file specified.

I don't know how to solve this cause I can't find any info online. Is Hyper-V needed for WSL 2 to work?

Things I've done:

  1. Enabled SVM Mode in BIOS settings (I was using Virtualbox/Vagrant before so this is enabled already)
  2. Enabled the required Windows Features:

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  1. Installed Linux kernel update package.
  2. Disabled CFG override system settings of vmcompute.exe
  3. Ran bcdedit /set hypervisorlaunchtype auto
  4. Ran systeminfo but getting Hyper-V Requirements: A hypervisor has been detected. Features required for Hyper-V will not be displayed.

System

Windows 10 Version 20H2 build 19042.964

I've installed HWiINFO and somehow AMD-V is greyed out so it means it's not supported. But I double checked and SVM Mode IS enabled in BIOS.

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