Sapling originated from the Mercurial open source project, which was largely Python (at the time). To make things faster and more maintainable, we started rewriting portions of it in Rust, and going through a binding layer to interact with Python. Critical pieces like the storage layer, parts of the wire protocol, and various others are all in Rust at this point, while a lot of the high level business logic remains in Python. We'll continue to shift more to Rust over time though, especially since pure-Rust Sapling commands feel way more snappy and pleasant to use.
It's difficult to find out information about the status of the oxidation project with Mercurial. I just noticed the 6.3 release earlier today and looked more into the rust support. I didn't get the feeling that most of Mercurial has been rewritten in Rust yet. The `hg help rust` information only lists a handful of features as gaining improvements from Rust, albeit they are likely core/essential components, as well as mentioning some/all of the work is experimental. The documentation here seems very much directed towards developers still.