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I set this up with proxmox on a lark over a weekend It would have been perfectly fine for desktop usage, but I had terrible performance, like sub 30 fps in vanilla Minecraft. (i3-8100, 1060 6gb) It may be possible to optimize it further, but I think you need some much better hardware than I have. It was surprisingly simple though, there are guides on the proxmox website.
I’ve used alacritty for ages, its lack of ui is appealing on a tiling wm and it is as performant as i need it to be