They might also run Linux kernel 3.7, that supported i386. Gray386linux is still maintained, and runs a patched 3.7 kernel.
I remember the link some month ago where that one small shop ran completely on an old Amiga (?IIRC, not sure, was linked here)
Around 98/99 I was involved in a small IT-management company serving SME around the region, we had a client producing distinct metal objects with a big press; this got feeded once a day with a 5.25 floppy from another machine with production data - and it was still in use while we had already ethernet/USB/3.5 floppies etc. :-D
A ton of industrial equipment are still using win 3.1.
As for the Windows 3.x based industrial equipment: Some industrial devices I have worked on in the past turned out to actually be ARM based, running Linux, but the software went a long way to convincingly fake old Windows style UI or emulate a DOS prompt. I was once tasked to extend such a UI library to faithfully reproduce Windows 98 style color gradient borders.
Only once have I seen an actual embedded 486SX with my own eyes, but not in active use anymore. Last year, someone dragged a dusty, old, weirdo Siemens telephony box to the the local Hackerspace. The box itself had a design language that screamed "Star Trek: Voyager". I found a UART, it was running "On Time RTOS-32" which, according to the German Wikipedia, was an RTOS with a Windows API compatible userspace, developed by a German company in 1996 and discontinued in 2023.
I can't think of examples offhand but you bet your ass there are donut shops and auto body repair services running 386s to do POS, inventory, and the like. Some of them may be driving terminals off Xenix.
I immediately wondered ... how long the new system would last or be used .... and how long it would be problem free ?
In the late 90s I was interning at a place, and one of the IT guys there was old, we're talking white beard. He thought Linux was an absolute joke, and told me that the future of IT belonged to Windows NT (though it should have belonged to OS/2). The reason why is because with Linux, there was "no ass to drag onto the carpet"—no one to sue when it breaks. With Windows, the largest and most successful software company of all time was backing it up, staking their entire business on customer satisfaction. Of course, he ended up being wrong about Linux, but only because companies (mainly Red Hat) stepped up to assume the risk for big clients. That's one of the major functions of business—to provide an arm for customers to twist.
80386 Microcode Disassembled
The roughly equivalent VexRISC configuration (full with MMU) is only 2736 LUTs, running at 124 Mhz (on Cyclone V, which I'm pretty sure is the same arch)
so there's still a chance