It isn't open source. It has a name, WebContainers, that implies it's based on the web, but it's designed around Node.js which isn't built on browser technologies as much as something like Skypack or Deno.
It also seems like it's going to be a memory, disk, and CPU hog, and that it's going to be pretty complex. I like where Skypack is headed and this seems like the opposite direction.
It's pretty cool but it seems like they're trying to create a lot of hype around it.