Git status shows files as modified

[serpro69]

I have found a similar issue here: #184 however none of the proposed fixes seem to be working anymore.
Whenever I do git status under bash on WSL all files are in 'modified' state, whereas under powershell working dir is clean. If I commit files in under bash in WSL, the situation is reversed - under powershell all files become modified (naturally).

My gitconfig has the following settings proposed in linked issue;

autocrlf = true
eol = lf
filemode = false

I also tried playing around with these settings and had no luck to fix this behavior.

[serpro69]

Setting these

git config core.autocrlf true
git config core.filemode false

on project level actually helped.