Here is what I have on a cheap tower server:
- Proxmox OS on mirrored zfs pool on two internal SSDs.
- Data pool on mirrored zfs pool on two internal NVMEs.
- Externally attached NVMe via usb3.1.

When I spin up VMs, they are on the internal NVMe zpool. They are backed up to the external NVMe.

I have performed disaster recovery of my Jellyfin VM and other VMs from the external NVMe to internal NVMe. When the server dies, I can fix it or buy a new server and restore the VMs from the external NVMe.

Hope this helps!