Isolated, but are they isolated enough? The article states that containers offer weaker isolation than VMs. (it doesn't quantify it though and I don't know this kind of thing offhand)
For example GCP and AWS both have container running services. They both use hardware VMs to isolate different tenants. You will never share a kernel with another customer (I don't even think you will share one with yourself by default).
Container escape exploits are more common than VM escape exploits.