Cannot run claude code from wsl environment

Until today no issues, but now when I run claude, it crashes on following error:

662 |     var file = this.spawnfile = options.file, spawnargs;
663 |     if (options.args === )
664 |       spawnargs = this.spawnargs = [];
665 |     else
666 |       validateArray(options.args, "options.args"), spawnargs = this.spawnargs = options.args;
667 |       if (this.#handle = Bun.spawn({
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 ^
ENOEXEC: unknown error, posix_spawn '/mnt/c/Windows/System32/reg.exe'
    path: "/mnt/c/Windows/System32/reg.exe",
 syscall: "posix_spawn",
   errno: -8,
    code: "ENOEXEC"

      at spawn (node:child_process:667:35)
      at spawn (node:child_process:14:39)
      at execFile (node:child_process:59:20)
      at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:188:1452)
      at new Promise (1:11)
      at gl6 (/$bunfs/root/src/entrypoints/cli.js:188:1422)
      at <anonymous> (/$bunfs/root/src/entrypoints/cli.js:188:1602)
      at $W$ (/$bunfs/root/src/entrypoints/cli.js:188:1822)
      at Ql6 (/$bunfs/root/src/entrypoints/cli.js:188:1861)

Bun v1.3.13 (Linux x64 baseline)

Anything I can do about it? Claude update or any other command fails on same error.