I recommend QEMU/KVM with GPU passthrough (will require two GPUs but an iGPU will suffice for the host Linux install if you don't need a powerful GPU for it). You don't get complete bare metal performance but it's close.

You can do USB passthrough for your gaming peripherals with the windows-only drivers installed on the VM.

I actually do this now for video games but with a windows VM running on a headless proxmox host that I remote into with Parsec. I had to scrap and remake the VM a few times in the beginning while figuring everything out but the VM has been going strong without breaking for around 1.5 years now.

I actually did go with the route of using a desktop as my server. I custom built it with the expectation of it being a server I would remote into for games. I have proxmox on it with a windows VM I remote into with parsec instead of sunshine. It allows me to keep a light laptop while still getting the beefy power of a desktop.

A custom PC running proxmox:

MOBO: Asus ROG Strix Z790-E gaming wifi

RAM: 4x 32GB Ripjaws S5

CPU: i9-13900k

GPU: Gigabyte RTX 4090

GPU2: EVGA GTX 1070

HDD: 4x 8TB WD red plus in raid 10

SSD: 2x 2TB Samsung 980 pro in raid 1

PSU: Super Flower Leadex Titanium 1600 W

Case: Fractal Design R5

I run everything on it: homassistant, Plex/*arr, pihole/unbound, my windows gaming VM, etc.