I ran into this same symptom (locale-gen can't find charmap files) after upgrading from Ubuntu 20.04 to 22.04 in WSL 1. The problem is that there is a bug in WSL 1 that prevents gunzip from running. This is a problem for locale-gen because, at least in Ubuntu 22.04, the charmap files in /usr/share/i18n/charmaps are stored in GZip *.gz format. Apparently, locale-gen depends on gunzip to unzip the charmap files, and when it can't run it, it is stuck.
The solution was
- copy UTF-8.gz to the Windows filesystem
- unzip it to UTF-8 with a Windows tool (such as 7-zip)
- copy UTF-8 back to /usr/share/i18n/charmaps
Then locale-gen worked correctly.