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Like another commenter said, Mopidy can do it all in one instance. It works, but I personally find its integration with MPD clients to be a bit clunky so I don't use it all that much.
Personally I use Snapcast as an endpoint, plain MPD for local files, and navidrome for remote access to my library.
Snapcast supports Spotify endpoints, so I just switch to my Spotify stream when I want to listen to Spotify and to my MPD stream when I want to listen to local stuff.
This is more of an ecosystem than a single solution though, so it may not be what you're looking for.
That's where I've been heading too. The snapcast client has been a bit unreliable for me on my desktop though (choppy and stuttering) but it's great in its unix-like flexibility and I'm sure it will continue to get better.
Honestly, I hope that mobile connections in my country are one day: fast enough, cheap enough, and reliable enough that I could just use snapcast remotely and get truly seamless self-hosted streaming but that's still a long way away I suspect.