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Debian 12 Cloud-Init VM: Which Cloud Init Image to Use?

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Hello,

I'm following a tutorial for this, and it's awesome, but one of the things they didn't mention is which format of image to download between qcow2, raw, and tar.xz.

These are my choices:

1734496444991.png

My VM storage is local on the Proxmox node. It's a ZFS mirror on a pair of NVME. The storage itself is thin provisioned. Space is not a concern.
When I make a new VM manually (with no template or Cloud-Init), my only option for saving VM disks is "Raw", but I'm not sure how relevant...

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