WSL 2 is virtualization-based (and likely Microsoft’s primary path going forward), but WSL 1 was not— it actually did implement the Linux ABI on top of the Windows kernel, allowing Linux processes to coexist alongside Windows processes (with no actual Linux kernel involved at any point).

It’s actually a pretty neat architecture— I’m on my phone right now and can’t track down a link, but it’s worth reading about if you’ve got the time. Kind of a shame that they moved on to the virtualization approach, but understandable— they’re trying to solve the same sort of problem as Wine, where you’ve got to mimic all the quirks of a foreign OS and it’s also a moving target (so you’re never “done”).