The advantage of using LXC for me is resource consumption and separation of concerns. I have about 35 Docker containers spread over 10 LXCs. The average CPU use is 1-3% and I only need about 10GB of memory (even with running bigger containers like Nextcloud, Gitlab, mailcow-dockerized etc.). With docker-compose.yml's, automatic updates are easy and robust.
[1]: https://du.nkel.dev/blog/2021-03-25_proxmox_docker/
[2]: https://du.nkel.dev/blog/2023-12-12_mastodon-docker-rootless...