They mean "cloud native" in the sense that it adopts atomic system updates and containerized application installs, which has been common in "the cloud" for years but is much less commonplace in personal Linux installations. Working in this way is a large part of why Bazzite "just works". It is also actually exactly how SteamOS works (with some implementation differences under the hood), so SteamOS is "cloud native" in the same sense.
I do think this marketing is unnecessarily confusing. The dayjob of the original master mind behind Bazzite and Universal Blue is working with cloud systems IIUC, so they find it an important thing to highlight.
I do think this marketing is unnecessarily confusing. The dayjob of the original master mind behind Bazzite and Universal Blue is working with cloud systems IIUC, so they find it an important thing to highlight.