Great question — answering as the UphillTech team:
All of this is done in VS Code. First, make sure to install the Remote - WSL VS Code extension. Open user preferences: File -> Preferences -> Settings In "Search settings" type cwd In the block labeled Terminal > Integrated: Cwd enter /mnt/c/Users/[your windows user name] Close settings and reopen the terminal and the starting directory should now be your windows user directory.
Full answer by James King: https://askubuntu.stackexchange.com/a/1374211 (CC BY-SA 4.0).
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