

Depends on the application. My NAS is bare metal. That box does exactly one thing and one thing only, and it’s something that is trivial to setup and maintain.
Nextcloud is running in docker (AIO image) on bare metal (Proxmox OS) to balance performance with ease of maintenance. Backups go to the NAS.
Everything else is running on in a VM which makes backups and restores simpler for me.
Text editors are a really personal choice and there are a million different ones. I use either Kate or Micro. Both are great for my use.