I have nextcloudAIO running on a VM with 6 vcpu, 16gb ram. No issues with performance.
The root partition is on an nvme drive, the data partition is on a HDD raid 1 array.
That VM is hosting another few services like nginx proxy manager, Heimdall, and a few other things I forget at the moment.
Never have any issues with performance



I would recommend at most ruining windows as the hypervisor then running Linux virtual machines. Maybe run a windows VM if you have a specific need.
This is mainly because Linux is much better “supported” for the majority of self hosted projects.
But you can of course do whatever you want.