That can vary based on whether you use HyperV or VMWare or something else.
Another big factor is whether or not you've got the VMWare tools (or their respective equivalent across the other stuff) installed.
And potentially version of the host / tools themselves, depending.
If you want to get something like an "If ... then ... else if ..." type logic, I suspect your best bet would be to try & go through support, though a request for info tends to be lower prio than a defect.
In the interim, you may avoid any "whoops" type side effect by including a "AND Computer.Operating System.Name NOT LIKE 'SERVER' " or so in your LD-query/queries as a simple solution?
Opened a ticket with Support to try to get a definitive answer. The tech assigned to my ticket was very helpful as well. From the get-go, though, he gave me a heads up that the Developers consider this exact data/acquiring workflow to be proprietary information. We dug through inventory logs after utilizing the output scan function " ...\ldiscn32.exe /f /sync /o=C:\invlog.txt"
The "Virtual Machine" designation for "Type" continued even after deleted the listing from the Core Console and running a full sync scan locally on the client.
In the end, we deleted the machine from the console again, uninstalled the LD agent with a /forceclean option, reinstalled, and it finally reported correctly as a "Virtual Server"