My understanding is that Compute Engines allow nested virtualization as described here. However, my reading seems to say that it is all KVM based. This means that any further virtualization (eg. running WSL on Windows) requires that the virtualization also be KVM based. My reading of WSL on Windows seems to say that it requires the Microsoft hypervisor technology (Hyper-V). I have found no trace of anything Hyper-V based able to run on Google Compute Engines. You then ask ... what about Google's VMWare as a service (Google Cloud VMWare Engine)? In that story I am presuming you are thinking of running WSL on Windows on VMWare. I'm afraid I have no information on that one.
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