Distrobox mounts $HOME in the container at $HOME by default. WSL and NSL do not, and that's my preference. This means you can install tools that change your default path, change your dotfiles, etc, without affecting the host. The other obvious difference is that distrobox is powered by podman or docker, while NSL uses a VM that runs systemd-nspawn containers.
thayne · · focus · HN ↗
bketelsen · · focus · HN ↗
NekkoDroid · · focus · HN ↗
To be fair, WSL mounts all your drives under /mnt/ by default, which I would argue isn't any better, arguably even worse.