The previous version of this, Factory OS, ran all of the Win32 apps in a microVM (which was the planned functionality for Windows 10X), while UWP apps could run natively. I wonder if this does something similar or if that was dropped.
(I spent some time trying to figure out how the VM is created to see if something like that could be done in regular Windows, but much of it is undocumented. Being able to only run one Windows Sandbox at a time in regular Windows kills some of my workflows.)