As I said, it is NOT documented well; and even when you do confirm that WSL2 engaged Hyper-V, the ramifications are even more poorly explained.
But yes, everything I've read and experienced indicates that:
1. WSL2 IS a VM and it necessitates installation of certain portions of Hyper-V, which as Type-1 hypervisor, means your primary windows partition is no longer bare-metal but rather now a parent virtual machine.
2. This has impact on running other Type 2 hypervisors such as VirtualBox or VMWare etc; as well as some types of performance-intensive applications and games.
https://docs.microsoft.com/en-us/windows/wsl/faq