Though Windows 95 was arguably similar running atop “DOS 7” it actually imposes its own 32-bit environment with its own “protected mode” drivers once booted. Dropping to DOS reverted to “real mode”.
EDIT it’s coming back to me. Windows 3.1 did have a a subsystem for running 32 bit apps called Win32 I think that’s what you mean. This was very much in the application space though.
It still used cooperative multitasking and Win 95 introduced preemptive.
https://lunduke.locals.com/post/4037306/myth-windows-3-1-was...
It’s backed up by another Old New Thing article at https://devblogs.microsoft.com/oldnewthing/20100517-00/?p=14...
The TL;DR is that Windows 3.1 effectively replaced DOS and acted as a hypervisor for it, while drivers could be written for Windows (and many were) or DOS (and presumably many more of those were actually distributed). The latter category was run in hypervised DOS and the results bridged to Windows callers.
(Edited after submission for accuracy and to add the Old New Thing link.)