<type name="Klarna\Kp\Observer\AssignData">
    <arguments>
        <argument name="log" xsi:type="object">
            Klarna\Core\Logger\Logger
        </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 Klarna\Kp\Observer\AssignData object that the following arguments should be used in the foo object's constructor.

• $log = new Klarna\Core\Logger\Logger (...)