Main advantage in my opinion is being able to easily backup and restore a VM and have other out of the box features linke point in time snapshots, firewall, hardware pass through. This I am talking about Proxmox.

Now that being said I don’t use VMs to run my self hosted services, I used to, but migrated all to LXC, which runs docker.

Some services get their own LXC as they are critical like DNS.