I listened to the Home Assistant nerds out there and it caused me a whole night of pain and suffering! Luckily it all worked out in the end and now my smart home system is more indestructible than ever.
If I would have just realized that my USB extender was stopping my Mini PC from booting at all, then updating Home Assistant would have been no problem. But it forced me to try Proxmox, so a blessing in disguise.
If you want to install Proxmox here is a video by Mark Watt Tech, which was great overview but I ended up doing things a bit different: https://www.youtube.com/watch?v=PrKQkI53xys
I ended up giving my Home Assistant VM 8GB of RAM and allocated all 4 cores. You can always edit this after. Just go to the Hardware tab, change it, then fully shutdown the VM to apply the changes.
After it was all up and running, Proxmox was throwing some errors because it can't update using the enterprise repo and I needed to switch it to the community one. Here is how to fix those errors: https://www.youtube.com/watch?v=5AumO9AKKB0