It seems to be more about hypervisors.

"KVM is a type 1 hypervisor, which essentially means it is able to run on bare metal. QEMU is a type 2 hypervisor, which means that it runs on top of the operating system." -- https://linuxconfig.org/qemu-vs-kvm-hypervisor-whats-the-dif...

AFAIK Actually Portable Executables produced by Cosmopolitan run on bare metal too so that would make Blink a type 1 hypervisor.