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If you go into VM settings > system > acceleration > paravirtualization interface you can select KVM, what's the difference between this and that?

The paravirtualization option affects the interface presented for the guest operating system for dealing with being virtualized.

This new code is about using different virtualization technology on the host system.

What you can configure in the GUI is an enlightenment that the guest will see. This is usually done to improve guest performance.

You can sill select these PV interfaces with VirtualBox-KVM, but the underlying hypervisor is different (kvm vs vboxdrv).