An OS or a hypervisor can run in bare metal. If I have Windows running in KVM, KVM is running bare metal but Windows isn't. Ditto with ESXi or Hyper-V. In the case of your setup Linux and KVM are both bare metal, but Windows isn't. KVM, ESXi, Xen are always running a privilege level above their guests. Does this make sense?
The difference between KVM and the more conventional Type 1 hypervisors is that a conventional type 1 can't run along side a normal kernel. So with Linux and KVM both Linux and KVM are baremetal. With Linux and Xen, only Xen is baremetal, and Linux is a guest. Likewise if you have something like Hyper-V or WSL2 on Windows, then Windows is actually running as a guest OS, as is Linux or any other guests you have. Only Hyper-V is running natively. Some people still consider KVM a Type 1, since it is running bare metal itself, but you can see how it's different to the model other Type 1 hypervisors use. It's a naming issue in that regard.
It might help to read up more on virtualization technology. I am sure someone can explain this stuff better than me.
Europe would have won against Nazi Germany even without the USA. They only entered after we had started winning the war without them. Japan might be another matter.