Sasaki: It's tricky to explain... Maybe the easiest way to understand it is that the methods used to achieve compatibility between Nintendo DS and Nintendo 3DS, and between Switch and Switch 2, are completely different.
Kawamoto: Simply put, those systems were compatible because Nintendo 3DS contained Nintendo DS hardware and Wii U contained Wii hardware. However, Switch 2 doesn't contain any Switch hardware.
nintendo.com
This explains why some games can't even boot, it is plain bad code that isn't running perfectly on the software solution. They also mention that improved performance is a thing in most switch games but this is most likely reading from the faster load times so chances are that cartridge games run just as they did. They confirm they are not really emulating switch 1.