Me too. Turns out alpine is better for server vms for my use case and cachyos is better for desktop for my use case as wrll (at least possibly until i figure out nixos)
Also, can confirm void is amazing on the desktop.
The one gotcha to be aware of here is that libvirtd as of now has two ways to be operated: Either run just the monolithic libvirtd service, or individual subsystems like virtstoraged. Trying to do both at the same time will cause issues.
Due to the limitations of OpenRC compared to systemd for interdependent and interoperating system services like this, I stuck with the monolthic libvirtd approach and it's been running fine so far.
Monolithic libvirtd (which is disabling the systemd libvirt) is the way to go.
I was also aiming for Xen initially. However, my host just crashed (can't recall the exact dump) when I tried running a Xen kernel - Alpine or not. I never confirmed if it's due to the Intel N5105 lacking the proper CPU extensions to support Xen or if I could hope to hassle the machine vendor for a firmware update to get it working.