I have the opposite experience of this. All of my local services are a single docker container inside an LXC. I don’t like that it’s conceptually messy, but in practice it’s easy to manage. What I love about it is the simplicity of backing up or moving the entire LXC between servers.

I’ve not had any drama with things breaking across Proxmox updates. The only non-gui thing I need to do during the process is adding two lines to the LXC conf to have Tailscale work correctly.