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VMs or containers?

I'm thinking about starting a self hosting setup, and my first thought was to install k8s (k3s probably) and containerise everything.

But I see most people on here seem to recommend virtualizing everything with proxmox.

What are the benefits of using VMs/proxmox over containers/k8s?

Or really I'm more interested in the reverse, are there reasons not to just run everything with k8s as the base layer? Since it's more relevant to my actual job, I'd lean towards ramping up on k8s unless there's a compelling reason not to.

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