Not a proxmox pro by any means, but it can do both VMs and containers. I have a few VMs for various Linux distros to play around with. I also have one dedicated VM for all my security related tools.
Stuff like PI hole, jellyfin, logstash, etc. dont really have any need for a full OS, so a container works perfectly. Plus having a full OS with several things running on it makes it more difficult if you just need to restart one service
I started doing everything in VMs but over time realized some things were better to maintain as containers
Gets even worse the more years of experience you have. You end up being the solo dev trying to figure out a stupidly over complicated 20 year old piece of software written by a sadist that loves WCF and using tcp sockets to send data between classes in the same project