Has anyone here tried to create an iSCSI target in Proxmox?

yes! in fact I just finished creating an iSCSI target in proxmox last week, it contains a 1TB volume piped over a 10gbe connection to my desktop

you just follow the debian instructions. My proxmox install is on zfs so I created a 1TB dataset and used that as the target backing device.

it works completely fine

edit:

Linux pve 5.15.74-1-pve #1 SMP PVE 5.15.74-1 (Mon, 14 Nov 2022 20:17:15 +0100) x86_64

The programs included with the Debian GNU/Linux system are free software;
the exact distribution terms for each program are described in the
individual files in /usr/share/doc/*/copyright.

Debian GNU/Linux comes with ABSOLUTELY NO WARRANTY, to the extent
permitted by applicable law.
Last login: Tue Jan 31 19:17:42 2023 from 10.0.0.55
root@pve:~# tgtadm --lld iscsi --op show --mode target
Target 1: iqn.2023-01.pve:tw
    System information:
        Driver: iscsi
        State: ready
    I_T nexus information:
        I_T nexus: 13
            Initiator: iqn.2016-04.com.open-iscsi:b76a35e41461 alias: tw-optane
            Connection: 0
                IP Address: 10.0.0.55
    LUN information:
        LUN: 0
            Type: controller
            SCSI ID: IET     00010000
            SCSI SN: beaf10
            Size: 0 MB, Block size: 1
            Online: Yes
            Removable media: No
            Prevent removal: No
            Readonly: No
            SWP: No
            Thin-provisioning: No
            Backing store type: null
            Backing store path: None
            Backing store flags:
        LUN: 1
            Type: disk
            SCSI ID: IET     00010001
            SCSI SN: beaf11
            Size: 1099512 MB, Block size: 512
            Online: Yes
            Removable media: No
            Prevent removal: No
            Readonly: No
            SWP: No
            Thin-provisioning: No
            Backing store type: rdwr
            Backing store path: /dev/rpool/data/tw_iscsi
            Backing store flags:
    Account information:
    ACL information:
        ALL
root@pve:~#
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