HMR hot-update.json found but giving me CORS error - WSL2

I have built a few templates with bud.js now, recently with the new versions after ~6.6.9 (somewhere around there) I am having HMR issues.
I am getting cross origin errors.

I am on Windows 11 with WSL2. Everything works flawlessly on older versions in other projects.

Host: http://localhost/myTemplate
Dev: Host: http://localhost:3000/myTemplate
BudJS: 6.9.0

[myTemplate] built in 763ms
localhost/:1 Access to fetch at 'http://localhost/myTemplate/wp-content/themes/wptheme.myTemplate/dist/app.ebc0a3543555f706b65e.hot-update.json' from origin 'http://localhost:3000' has been blocked by CORS policy: No 'Access-Control-Allow-Origin' header is present on the requested resource. If an opaque response serves your needs, set the request's mode to 'no-cors' to fetch the resource with CORS disabled.

I get the “green” dot of refresh confirmation on the bottom left of the browser. When I manually reload, everything is there, however it cannot get the individual HRM updates.

/**
 * Build configuration for bud.js
 * @param {import('@roots/bud').Bud} bud
 */
export default async bud => {
	/**
	 * The bud instance
	 */
	bud
		.when(
			bud.isProduction,
			() => bud.hash().minimize(),
		)
		/**
		 * Set the project source directory
		 */
		.setPath(`@src`, `sources`)

		/**
		 * Set the application entrypoints
		 * These paths are expressed relative to the `@src` directory
		 */
		.entry({
			app: [`scripts/app.js`, `styles/app.scss`], // [`./sources/scripts/app.js`, `./sources/styles/app.scss`]
			editor: [`scripts/editor.js`, `styles/editor.scss`],
		})

		/**
		 * Copy static assets from `sources/static` to `dist/static`
		 */
		.assets({
			from: bud.path(`@src/static`),
			to: bud.path(`@dist/static`),
		})


               /** I tried lots of different combinations here **/
		.proxy()
		.serve({
			host: 'localhost',
			port: 3000
		})

}

:thinking: Doesn’t bud dev also list an external proxy IP? If you use that, does this fix the CORS issue?

interestingly, it just forwards me to the local URL. So no, it does not fix it.