Selfhosted
A place to share alternatives to popular online services that can be self-hosted without giving up privacy or locking you into a service you don't control.
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Option 2 would be your best bet. Great balance between security and convenience. Bitwarden is my go to because afaik it stores every detail encrypted (unlike mainstream PWs) and when you open your vault, the database gets transferred to your pc and is decrypted locally. Its essentially the same as option 1, just 1000x more convenient.
Id only selfhost vaultwarden if you want bitwardens premium features, if you dont then youre maintaining a service which you wouldnt really need. Not to mention if you selfhost on a machine on your network, you have to deal with exposing that machine to the internet, not really worth it imo.