

If you have docker containers and other stuff all on that USB drive I’d really reccomend getting it all off that USB (not just logging) and onto a proper drive of some kind. USB thumb sticks are not reliable long term storage, you will wake up to find the drive failing one day and good chance you lose everything on it with little to no warning.
I have nextcloudAIO running on a VM with 6 vcpu, 16gb ram. No issues with performance.
The root partition is on an nvme drive, the data partition is on a HDD raid 1 array.
That VM is hosting another few services like nginx proxy manager, Heimdall, and a few other things I forget at the moment.
Never have any issues with performance