I understand where you are coming from but no, containers aren't enough isolation.

If you are running some public service, it might have bugs and of course we see some RCE issues as well or there can be some misconfig and containers by default dont provide enough security if an hacker tries to break in. Containers aren't secure in that sense.

Virtual machines are the intended use case for that. But they can be full of friction at time.

If you want something of a middle compromise, I can't recommend incus enough. https://linuxcontainers.org/incus/

It allows you to setup vm's as containers and even provides a web ui and provides the amount of isolation that you can trust (usually) everything on.

I'd say to not take chances with your home server because that server can be inside your firewall and can infect on a worst case scenario other devices but virtualization with things like incus or proxmox (another well respected tool) are the safest and provide isolation that you can trust with. I highly recommend that you should take a look at it if you deploy public serving services.