POSIX allows for hard links between directories, and also allows the implementation to forbid them: https://pubs.opengroup.org/onlinepubs/009696699/functions/link.html
Linux forbids them, AFAIU.
Should WASI say anything more? For info, Wasmtime currently fails link-at with EPERM on my Linux machine https://man7.org/linux/man-pages/man2/link.2.html#ERRORS, when attempting to make a hard link to a directory.