Trying a more ELI5 answer:
A Windows computer is able to use the physical components of a computer to run softwares. These softwares can do pretty much anything, including emulating physical components, and therefore run a Windows computer on these emulated components. This is how you can run windows inside a Windows!
But there is not much point to do that, however let’s imagine you have a very specific software you love, such as a mobile game, or an old Windows app, or a Mac or Linux software. You can’t run it on your current system.. but you can run a virtual system on your Windows, and finally run the software you want on this virtual system 🙂
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