Not really. There was no Ring -1 (hypervisor), no hardware-assisted virtualization as we use the term today. On Windows/386, it ran in Ring 0.
Virtual 8086 mode was leveraged via the NTVDM, shipping with the first release of NT.
[0] https://web.archive.org/web/20111110161740/http://blogs.msdn...
[Extra] https://devblogs.microsoft.com/oldnewthing/20130208-00/?p=53...
On the other hand, articles from people like Andrew Schulman and Matt Pietrek (before he got bought out by MS) are far more explicit about the truth.
As for being more advanced than NT, it depends what you consider "more advanced"; a traditional OS, or a hypervisor? It certainly takes some effort to wrap your head around the VxD driver model of the latter, while the former is quite straightforward.
...and as the sibling comment alludes to, MS eventually adopted that architecture somewhat with Hyper-V and the VBS feature, but now running NT inside of the hypervisor instead of protected-mode DOS.
I pretty much ran NT/Win2K at home for all internet stuff from then on, without flash at all. I do miss the shell replacement I used back in those days, I don't remember the name, but also remember Windowblinds.