I'm reading:
- "exclusively Nintendo Switch 2 game cards" as meaning its the new red S2 game card format.
- "include the original Nintendo Switch game and its upgrade pack all on the same game card" as meaning that the base game has been patched with the NS2E upgrade and the result written to disc.
Of course if any post release patches that occur may need to be downloaded but their apparent intent has been to provide a version that is playable from gamecard.
This sounds like the best implementation with the exception that the base game is not playable on S1 consoles (something you could do of you bought it digitally).
I'm reading:
So no, not compatible with S1 consoles