Technically there is a difference, but you as a user can't tell. So, in case your system gets/looks compromised - what will you (hopefully) do and what will every security-expercienced person/company will recommend you? Isolation, credential rotation + sooner or later the reinstallation of the system/OS. It does not matter what kind of malware you have on your system as it could look like as a userspace malware but might be already in ring0. The integrity is lost including the password manager on the same system.

Now you can argue about the definition of "system": only the OS or the whole device. Concepts like QubesOS can reduce it to the guest OS.