WSLv1 worked via Unix Subsystem.
WSL 1.0 was a Drawbrige picoprocess.
Your confusion is natural among those that aren't into Windows programming.
Here are the links for the related information,
https://www.microsoft.com/en-us/research/project/drawbridge
WSL 1.0 architecture,
https://learn.microsoft.com/en-gb/archive/blogs/wsl/pico-pro...
Then in WSL2 they just switched to using a VM, which is way more boring but probably less work to keep up with (I’m sure the Linux kernel has a lot of stuff that needs translating/implementing and it’s simpler to just use a hypervisor)
It is hard to find, unless one knows the technical details.