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for selfhosting stuff, I don’t see any requirements to be bare metal. the exception is the router/firewall. if you want to do software for that, then at least have a dumb all in one router as a spare when you inevitably break something and have family waiting on you to get the network back up. in an enterprise network, i would 100% keep networking physical. only keep physical server for applications that need every ounce of performance.
use docker apt package. latest features. builtin compose is a dealbreaker for in release version