I took a listen to the track in solo mode. It sounds like a clean guitar with some reverb, echo, and the slightest hint of distortion. Very mild..... However, I noticed there's almost no pick attack at the start of the notes/chords so it seems they are using a volume pedal with a really quick attack so you don't hear a fade in but more of a no attack at the start of the notes.

Very dreamy and mellow style sound. It has a distinct steel guitar sound to it. I added it for grins to a new song project I'm working on and it certainly added a steel sound in the background but more like a pad or subtle string section vs an outright steel.

The description by PG is apt.

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