OpenSearch and OpenSearch Dashboards best practice for deployment on ESXi host using containers

We would like to know best practice for deploying OpenSearch and OpenSearch Dashboards using containers
We have 1 physical server (ESXi) allocated for production setup that has : 256GB memory and Storage of 40TB

our Env should keep around 10TB data/logs that gathering from other systems

and want to know what is best way for deploying OpenSearch? options we were thinking in our case:

Option 1: to install 1 Linux OS on ESXi and deploy OpenSearch docker images on it
if yes, what is best containers split we should use? i mean for example:
how to set master and coordinating containers?
how many data nodes should we use for ~10TB data?
or do you have docker-compose file that we can use for this scenario?

Option 2: to create several VMs on ESXi host that we have and to deploy containers on several VMs that on same ESXi
if this option, what is best way of deploying it using containers for our case?

or any other option you may think of and recommend