Do you use zigby for app devices?

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Yes, I have lots of Aqara, Sonoff and Phillips Hue all around the house. I bought a Conbee II dongle on Amazon to use as primary controller and zigbee2mqtt running on HA to manage the devices. You will need a USB extension cord a few feet long so that the dongle is not plugged directly into a USB port otherwise you get interference.

Do you run ha on a VM or dedicated device?

Dedicated Raspberry Pi 4 with 8GB and 128GB SD card

I have a single Matter ceiling light from Aqara but it uses a separate hub. It was the most expensive of all.