I recently moved Nextcloud and Gitea from Containers on a Debian VM to Alpine LXCs running Alpine's packages. I've never had Nextcloud's web interface so snappy and my resource usage for both is next to 0. If you're running Proxmox I'd highly recommend trying out Alpine LXCs if they package your services.
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Good news, DNS over TCP in musl has been fixed since v1.2.4 released in May https://www.openwall.com/lists/musl/2023/05/02/1
So if you use alpine >= 3.18 you should no longer have this issue.