WebAssembly runtimes, including WasmEdge, are all secure sandboxes that can isolate and run applications. They are definitely "containers". In fact, one might argue that they are much safer containers than regular Linux containers (LXCs).
You can run applications in WasmEdge through a simple command line in an operating system process.
https://wasmedge.org/book/en/quick_start/run_cli.html
Now, it is common to run WasmEdge applications inside "container management tools", such as crun, containerd, cri-o, kubernetes, and more recently Docker Desktop and Docker CLI.
However, the reason is simply to provide a better experience for developers and ops who are already familiar with container tools. In the example of Docker Desktop, it uses runc to start Linux containers and uses WasmEdge to execute Wasm apps. As Solomon Hykes puts it eloquently, the idea is to run and manage Linux containers and Wasm "containers" side-by-side in the same network with a single set of tools.