This is the way.

There’s nothing worse than finding your DNS/DHCP has gone down and it’s a VM / container running inside a server that can’t start because it doesn’t have an IP address and you can’t resolve names to get the thing started.

Break things down into chunks that make sense - to you.

I have dedicated (low power) hardware for the interweb firewall / DHCP / core network stuff.

I have a NAS for storage with all the backups / reinstall images on (so I can rebuild the firewall if there’s no internet, for example)

Then I have everything else in a single server.

Sources: a house fire, water leak & many hardware failures & borked upgrades over many decades.