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