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I don't have recommendations for a case but I would advise you to go with True NAS scale as it also makes virtual machines and is more open / less annoying than Proxmox.
https://www.truenas.com/docs/scale/scaletutorials/virtualization/creatingmanagingvmsscale/
That's interesting. I had thought of doing TrueNAS Scale as a VM running in Proxmox, but you're suggesting have TrueNAS itself be the bare-metal hypervisor? What do you find annoying about Proxmox?