You're absolutely right. Hyper-V has historically focused on server use cases and not on the desktop experience. This has led to all sorts of rough edges on Windows desktop. That said, this is starting to change [1], and I'm optimistic we'll make more progress in this space moving forward.
Disclosure: work for Microsoft on the Hyper-V team.
Hyper-V uses a type 1 hypervisor, which sits below the NT kernel. You might be thinking about the Windows Subsystem for Linux, which does sit on top of the NT kernel.
Disclosure: work at Microsoft on the Hyper-V team.
Full details: https://blogs.technet.microsoft.com/virtualization/2018/08/1...
Disclosure: Microsoft, Hyper-V team