Yes, the Nvidia proprietary driver has a kernel module that must be installed separately from the kernel. Most distros that focus on desktop usage and/or gaming handle this for you in a relatively simple way, but even with that, if you use a cutting-edge kernel you'll often end up with an unbootable system due to the kernel updating before the nvidia kernel module does. If you need nvidia on Linux, either use the (much worse, but rapidly improving) open source drivers or a distro that uses consistently supported kernels like Ubuntu, Mint, or Pop!_OS
I was trying to make it clear it was built as part of the kernel source, not as an external module.
There are some subtle arguable advantages, for example on x86 static kernel text sits on 2MB hugepages while module text sits on 4K pages from vmalloc.
The kernel on my gaming machine is actually built without loadable module support at all. It's a static binary with only the exact necessary set of drivers turned on.
Aside from source availability and maybe the risk of version mismatch, I mean.