Sell it and buy a better suited pc? Or just sell the GPU ^^
Homelab
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Why not - I used to add my previous gaming machines to my homelab multiple times. The only problems are cheap mainboards. Lenovos Legion Rebuilds I don't know enough about to say if their hardware is ok for that - their workstations would better be suited, I gues. But usually I'd say: why not. Just remeber to have regular backups in place, just in case
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Hmm but have you thought about power consumption? $$$
I'd up the RAM to 64GB and run the extra stuff in Hyper-V that way it's easy to keep your gaming OS clean and prioritize services.
I do this. Gaming on Windows on NVME, When I want to lab I boot esxi from usb. Have second SSD for the esxi data store.
There are things that real server hardware does fasger/better, but there is no reason why old gaming hardware can't be a fileserver, router, firewall, gateway, etc... It'll do Just Fine (TM) at it for home use.