So the effect is a bit like VNC in that you can remotely access a desktop, but the desktop you see is not a copy of the one being actually displayed on the machine's monitor. It's entirely its own thing, only visible to that particular login.
Actually, not necessarily; you can use Xvnc to achieve this with X+VNC. It's an X server that serves over VNC.
Can Wayland do this? Yes! But, the problem is that there is no singular Wayland "display server". This is both a big strength and big weakness of Wayland. In this case, it means that I can't point to a single correct way you can do this. However, with the compositor I currently use, SwayWM, it's very trivial: I can start Sway inside of an existing compositor or X server to get a nested desktop. You could use this with Waypipe or X11 forwarding for example. It can also be started with wayvnc inside, to expose a VNC server from Sway, though this is not really any different from starting an Xvfb and running a VNC server inside of it.
Interesting. I remember asking some Wayland devs a few years back about this and they said this use case would never be supported. I'm glad that's changed! It means that if the day comes that I have to use Wayland, I won't necessarily lose functionality.
(Just for clarity, I'm not opposed to Wayland if it can do what I want. But I'm not excited by it, either, because the benefits it does provide are ones that don't really matter to me)
Does wailand supports window managers ?
Wayland doesn't have a single display server. Most of what was the X11 display server is moved to the kernel and libraries. So, the WMs ARE the display server.
xv, xpdf, xterm should work fine. xsnow should work, but will only see X windows. fvwm2, it can run on some Wayland compositors, but the better option here would be a compatible replacement: as far as I know, we still don't have an fvwm2 equivalent, but SwayWM exists as a replacement for i3, for example.
I stay with X because it lets me have multiple independent logins with their own desktops. The last time I checked, Wayland doesn't support this, and this is well outside of what VNC does. This is a very important facility to me.