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Um, Proxmox?
I am running everything in docker compose so I've never found a use to it that justifies the waste of power
docker-compose doesn't scale well and if you run it natively it is a little less secure.
Virtualization adds 1-2% of overhead at most and gives you way more control of how the hardware is used.
If you setup is small docker-compose might be easier to manage but as soon as you get more hardware it becomes the limiting factor. I still use docker-compose but now I run it in a VM
I switched from docker compose to pure Ansible for deploying my containers. Makes managing config and starting containers across multiple hosts super easy. I considered virtualizing too but decided it didn't offer me enough advantages. If I ever have an issue with the host OS I just reinstall using a preseed file and then rerun my playbooks and it's ready to go.