It’s not applying because of:
Ansible is being run in a world writable directory
It means your config file permissions allows for anyone to modify them, thus making it “unsafe”.
It’s more tricky in your case, because you seem to access this file from a Windows filesystem mounted in your WSL VM IIRC, and I don’t quite remember how it works, but filesystems mounted this way are world readable, from my previous experience at least. Here is a documentation I haven’t read you might find useful: File Permissions for WSL | Microsoft Learn.
Multiple ways to address it; you could either change your config file path, avoid having to use one in the first place, clone your repo elsewhere on your filesystem or see if you can “fix” your mountpoint permissions.