disk setup confusion (where is the actual proxmox install located?)

Hi.

I have been using proxmox for a while now, but I still get confused when setting up my storage.

Scenario A:
I am currently setting up a homeserver for a friend who wants to experiment in a homelab.

Available storage options:

• 500gb pcie nvme
• 1 TB SATA SSD
• 4 TB HDD

This setup is for home use with regular backups on an external storage.

My plan is to use

the nvme drive for:

1. proxmox itself
2. storage for templates...

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