Fedora Workstation is what I use for my desktop. If I were to have to reinstall now I’d do Silverblue.
For my home lab I do Proxmox with a couple of VM’s for Ubuntu server for pihole DNS servers and an OpenMediaVault VM for my docker workloads. I’d probably do CoreOS or IoT if I was starting over there though.
On the fly atomic updates (the recommended update path for DNF installed apps requires a system reboot.) Though you can do it live, doing offline upgrades is safer so you don’t replace some runtime something is using midflight.
Also, flatpaks have some system isolation and have to use flatpak portals and explicit permissions/mounts giving them less ability to negatively affect my system.
Also, Flathub just has everything that I need to run anyway, at least for GUI apps.