It'll be interesting to see details here, which I guess will come out over the next couple of days.
They could either go the syscall emulation route (as in current WSL), or possibly the "thin hypervisor" route, the fact they're talking kernel versions makes me think that may be what they're planning...
Whilst it doesn't explicitly mention Virtual Machines or Hypervisors, I'd read this as making use of that kind of technology with some additional tech. for interop with Windows to the level of WSL currently.
They could either go the syscall emulation route (as in current WSL), or possibly the "thin hypervisor" route, the fact they're talking kernel versions makes me think that may be what they're planning...