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Does this cause all traffic at the reverse proxy to appear to come from the source IP of your VPS or does it preserve the original source IP?
I've been working on setting up a similar setup myself and am trying to figure out specifically how to handle the forwarding on the VPS.
Yes, I do loose the origin IP and I'm a little bugged by it. It also means that ALL traffic incoming on a specific port of that VPS can only go to exactly ONE private wireguard peer. You could avoid both of these issues by having the reverse proxy on the VPS (which is why cloudflare works the way it does), but I prefer my https endpoint to be on my own trusted hardware. That's totally my personal preference though.
I trust my VPS provider to not be interested enough in my data to setup special surveillance tooling for each and every possible software combination their customers might have. Cloudflare on the other hand only has their own software stack to monitor and all customers must adhere to it. It's by design much easier for them to do statistics or snooping.
You can do reverse proxy on the VPS and use SNI routing (because the requested domain is in clear text over HTTPS), then use Proxy Protocol to attach the real source IP to the TCP packets.
This way, you don't have to terminate HTTPS on the VPS, and you can load balance between a couple wireguard peers so you have redundancy (or direct them to different reverse proxies or whatever).
On your home servers, you will need an additional frontend(s) that accepts Proxy Protocol from the VPS (as Proxy Protocol packets aren't standard HTTP/S packets, so standard HTTPS reverse proxies will drop them as unknown/broken/etc).
This way, your home reverse proxy knows the original IP and can attach it to the decrypted http requests as x-forward-for. Or you can do ACLs based on original client IP. Or whatever.
I haven't found a way to get a firewall that pays attention to Proxy Protocol TCP headers, but I haven't found that to really be an issue. I don't really have a use case
Oh neat! That looks like a perfect fit for me! I saved your post and will come back to it once the biyearly "just f*ing fo it again" motivation hits me once more :D