There's arguments in both directions for something like kvm. Wiki states it pretty well:
> The distinction between these two types is not always clear. For instance, KVM and bhyve are kernel modules[6] that effectively convert the host operating system to a type-1 hypervisor.[7] At the same time, since Linux distributions and FreeBSD are still general-purpose operating systems, with applications competing with each other for VM resources, KVM and bhyve can also be categorized as type-2 hypervisors.[8]
> The distinction between these two types is not always clear. For instance, KVM and bhyve are kernel modules[6] that effectively convert the host operating system to a type-1 hypervisor.[7] At the same time, since Linux distributions and FreeBSD are still general-purpose operating systems, with applications competing with each other for VM resources, KVM and bhyve can also be categorized as type-2 hypervisors.[8]
https://en.wikipedia.org/wiki/Hypervisor#Classification