I used VMs some time ago but never managed to look deeper into separation of bare metal vs VMs. Hence I can’t assess this reasonably.
Docker got me interested when it started and after discovering its networking capabilities I never looked back.
Basically I’m trying to minimize the possibility that by intercepting one dockerized service the attacker is able to start interacting with all devices. And I have lots of devices because of a fully automated house. ;) My paranoia will ensure the constant growth of privacy and security :)

Guessing it is more a habit from back in time when ssl certification wasn’t common. Panic of MITM attacks, friends sharing their trusted access to other friends, etc. all contributed to my actual status of paranoia.
Don’t make me reconsider my cybersec approach ;)

Rotating passwords only for web services. Vaultwarden does make it easy. Not all services allow 2FA.

I’m somewhat paranoid therefore running several isolated servers. And it’s still not bulletproof and will never be!

• only the isolated server, ie. no internet access, can fetch data from the other servers but not vice versa.
• SSH access key based only
• Firewall dropping all but non-standard ports on dedicated subnets
• Fail2ban drops after 2 attempts
• Password length min 24 characters, 2FA, password rotation every 6 months
• Guest network for friends, can’t access any internal subnet
• Reverse proxy (https;443 port only)
• Any service is accessed by a non-privileged user
• Isolated docker services/databases and dedicated docker networks
• every drive + system Luks-encrypted w/ passphrase only
• Dedicated server for home automation only
• Dedicated server for docker services and reverse proxy only
• Isolated data/backup server sharing data to a tv box and audio system without network access via nfs
• Offsite data/backup server via SSH tunnel hosted by a friend