Can someone please explain to me the differences between ISVforce and OEM Embedded App? If someone is trying to build solution/app for a specific industry/cloud i.e. health/education, is it going to be ISVforce or OEM Embedded App? Also if there any specific level of partnership required with Salesforce to create any of these app?
See this. However, as a short summary, ISVForce partners sell their apps to existing Salesforce subscribers as an addon to Salesforce, so their licenses are addon licenses to base Salesforce licenses, while OEM partners sell actual Salesforce licenses (as a reseller) to their customers; their customers may not even be directly aware that they are using Salesforce.
You generally want to be an ISVForce partner if you expect your customers to want/need CRM functionality with your app as an addon, and an OEM partner if you are selling your own total solution that has no CRM functionality/integration. Most developers are in the ISVForce sphere, but a few opt for OEM instead.
OEM is more expensive for a partner (e.g. 25% for OEM, vs 15% for ISVForce), but is cheaper for customers than a ISVForce solution (as they need both CRM licenses and ISVForce app licenses).
There is no specific level required to be a OEM vs. ISV partner. Any level partnership can be either type of provider.