I assume it's running under a VM rather than directly on hardware. Running bare metal would require someone writing non-mac drivers for the hardware, which seems to be something only the Asahi folk seem to be have attempting.

It would be interesting to see how x86/x86_64 windows apps run under hosted win. I don't know what the performance characteristics of the windows x86->ARM translator, but I'd hope for being within cooie of Rosetta performance.