Recommendation on disks and partitions on new install


I am looking to use CyberPanel with OpenLiteSpeed on Ubuntu 20.04 in a VM with dynamic disks. I have been researching what would be the best way to deploy disks and directories in regards to overall use, backup, recovery (if OS failure ever happens) and OS updates/upgrades.

Configuration Option 1:
I was thinking of one main disk let’s say 1tb dynamic, which would hold all the directories /var /home /etc /data (for container mapped storage). The benefits of it that it’s straight forward in creation and administration as well easier to backup the entire VM with one disk and if complete failure or corruption were to happen I can recover from backup fairly easily. Draw backs is that upgrading the OS would be difficult. Also more at risk of OS failures that would need to be recovered from backup.

Configuration Option 2:
This would include an OS disk with /var /home /etc and a second Data disk for /data.
Configuration Option 2b:
Then I thought should I also move /var /home /etc to this second disk?

Configuration Option 3:
Then my mind really got going and thought if there would be performance, security and reliability benefits if I create separate disks for each directory. At this point I am increasing administration for this VM in backup etc… Also, would there be any benefit over option 1 or 2b?

I should point out that /home might grow to larger than 300mb over time.

I would love to hear some feedback with others with more experience on such matters.

Thanks in advance.