<type name="Magento\Store\Model\Config\Reader\Website">
    <arguments>
        <argument name="scopePool" xsi:type="object">
            Magento\Framework\App\Config\ScopePool\Proxy
        </argument>
    </arguments>
</type>

This is a type configuration.

This configuration is for the base area. Base area configurations will apply to all the sub-applications.

This configuration tells the Object Manager that when a user wants a Magento\Store\Model\Config\Reader\Website object that the following arguments should be used in the foo object's constructor.

• $scopePool = new Magento\Framework\App\Config\ScopePool\Proxy (...)

<type name="Magento\Store\Model\Config\Reader\Store">
    <arguments>
        <argument name="scopePool" xsi:type="object">
            Magento\Framework\App\Config\ScopePool\Proxy
        </argument>
        <argument name="storeManager" xsi:type="object">
            Magento\Store\Model\StoreManagerInterface\Proxy
        </argument>
    </arguments>
</type>

This is a type configuration.

This configuration is for the base area. Base area configurations will apply to all the sub-applications.

This configuration tells the Object Manager that when a user wants a Magento\Store\Model\Config\Reader\Store object that the following arguments should be used in the foo object's constructor.

• $scopePool = new Magento\Framework\App\Config\ScopePool\Proxy (...)
• $storeManager = new Magento\Store\Model\StoreManagerInterface\Proxy (...)