There are physical and electrical differences between type I and II cassette tape.
The physical differences refer to the oxide coating materials that on type I cassettes, shed coating more easily so more frequent head cleaning is needed.
Electrically, they each have different bias and eq requirements that make type II formulations come away with lower distortion and less hiss as well as reduced modulation noise and higher output levels without gross distortion.
Most Portastudio manufacturers prefer to only work with type II tapes because of their physical and electrical benefits.
Type II cassettes are also a newer technology and were developed to overcome the pitfalls of type I cassettes.