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the alpine distro that rancher is using to run containers I am guessing is missing all the key display bits. You could dive into the VM using

rdctl shell

but your env will basically be a fork. now the app wouldn't run in the distro scope so you have a graphical app in a container that will redirect to rancher's distro and then wslg will pick that up and redirect to host? Bit of a fragile chain there with dealing with sockets, but hypothetically it might work.