That happens because you dont have permissions to write in the system32 folder. If you run the Ubuntu application as an administrator, you'll get the permissions to write. However, you won't be really in that file, because of the way that the virtualization of files and errors might happear doing so, and I do not recommend to run the console in a privilege mode (for seccurity issues).
Fortunately, in version 1903 of Windows 10, this will change, and you'll be able to navigate the WSL folders via Windows Explorer, and for sure that issue will disappear.
Edit: the best practice, you do the work in a folder in the Windows File System, and cd to there in the WSL console. VSCode has this integrated very well, if you have an open file in VSCode you can just do New Terminal and choose a WSL terminal. The terminal will already be in the folder where you file is.