Type 4 drivers, or Printer Class Drivers, operate on the UWP (Universal Windows Printing) platform, which was released by MS with Windows 8 and higher.
The V3 driver is designed with the older windows to print spooler platform. This platform is the traditional or original standard.
As time marches on, more and more applications are updated to support the UWP platform. The type 4 driver is more suited for printer sharing when residing on a Windows server.