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For the unprivileged container thing, containers tend to be lighter on resources than VMs at the cost of a little isolation (they share the same kernel as proxmox which could have security implications).
The ability for lxc containers to run unprivileged with all the restrictions that entails alleviates a bit of that security risk.
Both options are generally considered pretty secure but bugs/vulnerabilities could break isolation in either case. The only real 100% safe isolation is bare metal.
I tend to run containers unless I have a really good reason to need a VM, and run unprivileged unless I have a really really good reason not to.