I used to be bare metal Debian, but I moved to ProxMox for a few reasons. Backup and restore is a breeze, and the UI makes things human friendly. It makes it easier to separate my wiki notes in an LXC so that I can still see them if I’m doing maintenance on my main server VM that requires restarts. There is essentially no noticeable performance reduction. It works, it’s easy, and the simplicity has saved my butt a few times. I don’t think I’ll be switching, and I’d recommend it to anyone running a homelab. I still use docker to manage most of my services inside a VM.