Making home setup more resilient - HyperV, Proxmox ? Please help

Setup : I currently run a home environment containing domain controller (win 2016 server over lenovo S510 hardware) with two VMs using Hyper-V ( VM A for Pi-hole, VM B for Unifi controller, both on Debian linux as OS, no GUI) . I also have a NAS (QNAP 332X) with SFP+ connected to it from switch that has SFP+ ports. NAS holds all of my data and backs itself to older synology unit.

Issues i want to solve :
small issue - whenever I reboot the machine (windows patches ,etc), I lose internet, DNS , and wifi. this is disruptive
big issue - while I backup a server using Veeam to NAS, what happens if MB dies? I have usb key + full backup of the server but where do I restore it to? how long would I be out ? with kids learning from home and myself/DW working from home, this is a concern. I do not have any other copies of Windows Server license so I can not do it in Windows without buying additional license.

Possible paths

A. “Cold standby” just buy another equivalent Lenovo S510 from e-bay , keep spair components. if primary fails , restore from veeam to the spare hardware.

B. “Shared storage” cluster. Buy a piece of similar hardware, stand by virtualization software on it (i.e. hyper-v server 2019). Move VM A an VM B to it, turn existing domain controller (DC) into VM and use freed up hardware for second node of failover cluster.

C. 3 node debian Proxmox setup with either shared storage of NFS or Ceph. More hardware to buy.

D. Something else? i.e. buy a second server, buy another Windows Server license, install second DC, set up Hyper-V failover/replication ,etc.

I have various spare hardware laying around not used (i7-3770 +32 MB RAM desktop ,Qotom-310G4PC with very old Celeron 3215U I can turn into quorum node)

My target budget -$1000

Questions :

  1. What would you recommend for my setup and adding resiliency?

  2. The Hyper-V path, would it work? Can I get failover cluster with 2 nodes (and quorum on NAS) and host my VMs on it? Could nodes themselves be in ‘workgroup’ and host the domain controller that runs the domain?

Thank you!

I don’t see a reason to go with 3 instead of a 2 node Proxmox cluster (option c)?

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