This is Nowhwere is a song by Canadian country musician Orville Peck.
The song is featured in the Season 2 episode "Chapter 5: The Windmill". It plays during the final scene of the episode that shows Hilda, David and Frida leaving the Windmill as the forest animals make it their home, followed by Victoria Van Gale sitting on a beach holding the skull of her Nisse. The song keeps playing over the end credits.
Orville Peck composed the song specifically for the animated series[1].