Not OP, but I run Docker in LXC because my Proxmox host is an Intel NUC and I only have one graphics card (integrated).
I don’t want to passthrough the iGPU to a VM because then I lose video output for the host. I also don’t want to use SR-IOV for iGPU because it’s buggy and results in garbled output for HDR content. That’s why, in my case, Docker in LXC makes sense.
Obviously if I had a choice, I would prefer to do Docker in a VM with a dedicated GPU passed through.
I’ve done Docker in LXC for about a year and it’s been fine. Not perfect and not as secure as a VM, but it suits my homelab.