I do "sudo pengwin-setup update" weekly on all of my machines that have it (3, all Windows 10 Pro, 20H2). Today, 1 of the 3 did this:

I've made no changes to this machine's WSL2 (or anything really) since last week when this command ran successfully. I searched Google for this error and found nothing.

Hello @laurin1 ,
Do not use sudo, just run:
pengwin-setup update
Regards
Oh, yea, that is so odd, I don't know why I suddenly started doing that on this one machine. Thanks and sorry for the trouble.
You are very welcome, and this is the purpose of the forum, to help users. Probably you have (and many others) the association between update and sudo due to sudo apt update.
@crramirez Thanks, I ventured over searching for this answer, I did the same exact thing as @laurin1
d'oh!
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@crramirez Thanks, I ventured over searching for this answer, I did the same exact thing as @laurin1
d'oh!