I don't get proxmox and LXC

Im terribly sorry this is a stupid question but I've started out with my homelab journey with a bare metal linux install and docker containers running a media server, *arr stack, a dashboard, paperless-ngx, etc and now that i finally got something more powerful for my homelab upgrading from my raspberry pi I assumed a proxmox install would be my next step because that's what i see everywhere but i just don't understand the use case, why would you want to manage so many different vms? Why even use different vms, how are LXC containers better? Ive never seen an option to get them on the GitHub page of a project, why hoolahoop and map so many things to get your config files in one place when you can just map the config directory from a docker container

I just don't understand the use case, if you use it please chime in and help me understand why you do over just a single debian or fedora server install and run everything in docker from there

Edit: thank you all for your responses, it really helps