You can go supervised! You still have most of the operating system available to your needs and you can still use add-ons. I use it for years and it works like a charm
homeassistant
Home Assistant is open source home automation that puts local control and privacy first. Powered by a worldwide community of tinkerers and DIY enthusiasts. Perfect to run on a Raspberry Pi or a local server. Available for free at home-assistant.io
I run my own a VM.
I was sceptical about running in a OS that I can't run my normal updates and automations on but HA OS has been rock solid and easy. Plus you get a few more features
I second that, I just put it in a VM on my proxmox host. zero issues so far.
Running it on a bare Pi, HAOS, imho you get the most performance, and support if it goes wrong.
Running on more powerful hardware (x64 host), VM all the way. It's so much easier when you can snapshot, move VMs around, and split out components when needed.