It is about both, and the distinction is the key to the whole area.
That product is a virtualiser, not an emulator. Virtualisation means the guest's instructions run directly on the host processor, with the hypervisor managing isolation and hardware access. That is why it is fast, and it requires the guest and host to share an instruction set.
An Apple Silicon Mac has an ARM processor. An x86 guest does not share an instruction set with it, so there is nothing to virtualise — the instructions would have to be translated, which is emulation and a fundamentally different and much slower proposition.
So the requirement means: x86 host, x86 guest. The project's own maintainers have stated they do not intend to port it, for the same reason it does not exist on other ARM platforms.
What you can do instead splits along exactly this line.