Only if you don't use windows tooling. If you use a native windows git client over the network file share, trouble begins. Even vscode without remote wsl core.
You can put everything inside Linux, but then it's better to switch to Linux completely. Doesn't make sense to do everything inside the wsl vm.
Node/js development works really well on native windows. Some things are a bit slower, but it's not horrible.
But also pnpm has quite decent performance on NTFS, it uses symlinks