https://bugs.winehq.org/show_bug.cgi?id=56647
--- Comment #3 from Erich E. Hoover erich.e.hoover@gmail.com --- (In reply to Lorenzo Ferrillo from comment #2)
... This cause cargo to ask for a NtQueryInformationFile with FileAttributeTagInformation (in addition to FileStatInformation) If this return IO_REPARSE_TAG_MOUNT_POINT, as it's in this case, it try to get the Reparse Point info with FSCTL_GET_REPARSE_POINT where the flow is failing on readlink (as linux mountpoints aren't symlinks) ...
It's been a while since I've looked at this, but I thought I had it set up to return an IO_REPARSE_TAG_LX_SYMLINK (WSL Linux Symlink)... I'll try to take a look at these issues this weekend, but if it's failing to "convert" unix symlinks (or I forgot to add that patch) then that could explain the issue here.