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Selfhosted
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Personally I go with low resource box with lots of drives for a nas and a higher compute but low storage box for a hypervisor. That way the NAS storing all the bulk data uses as little power as it can and can just sit there doing the pretty well singular task of serving drives. Backup is all automatic via mirror raid and snapshots.
Would you use something other than TrueNAS, then?
I use Xigmanas, which is kind of the forgotten grandfather of TrueNas due to a fork/renaming years ago. I like that it's more designed as a embedded image image, so it feels more clean and purpose built.
For the VMs I go with XCP-ng, It's been a long time to recall exactly why I switched away from Proxmox but it had to do with the way that resources got shared by the VMs and the host where I wanted them to have a more distinct split.
They all have their +/- and eventually if it gets taken far enough as a hobby you'll end up finding little adjustments to make that are specific to your needs and setup that make sense only to you.