Website User and System User will be standard user types and these cannot be deleted or edited. To handle the case of limited access of documents for the employees by default ERPNext has added a new user type 'Employee Self Service'.
There are default User Types, 'System User' and 'Website User', the System User can access the desk and website portal whereas the Website User can only access the website portal. The User Type document plays an important role to handle this use case. But assume 500 people are working in the company out of which only 100 use all documents and the remaining 400 need only documents for daily attendance or leave applications. For example, in the company, to record the daily attendance or leave application every employee was given required system access. Certain users don't use all the modules and need only specific modules.
Limited users can access only specific documents of the specific modules. The user will get limited access to the system.