Thanks, that's a nice bit of clarification. If I read it right, it's saying that, starting with Big Sur, no third-party kexts are stored in the SSV. Specifically, they're saying there are three types of extensions, which are handled as follows:They don’t have to be in the SSV to be loaded in the kernel. According to this pages, 3rd party KEXTs stored in `/Library/Extensions`, but 1st party extensions are stored in `/System/Library/Extensions`.
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Extensions, Big Sur and M1 Macs
How to use kernel extensions, and their replacement system extensions, on Macs running Big Sur, including M1 Macs.eclecticlight.co
1) First-party kernel extensions (kexts), where first-party means "Apple". These are stored in /System/Library/Extensions, which is in the SSV.
2) Third-party kernel extensions (kexts), where third-party means it comes from a non-Apple developer. These are stored in /Library/StagedExtensions, which is not in the SSV.
3) Third-party system extensions, which the app keeps in its own folder, and are thus likewise not stored in the SSV.