I’ve been using podman desktop (https://podman-desktop.io/) which is also free. I’ve never heard of rancher desktop so I’ll have to give that a look!

Nothing is 100% fool proof. Hardware or software encryption both have their issues. Case in point, Truecrypt (on which VeraCrypt is based) had a few issues that ultimately led to its demise. Hardware devices (I saw mention of one SSD maker) a few or years ago would store keys on the device that could be read off. So you’re going to have to give me a source for “FDE is better done in software. It’s more secure” beyond “just trust me bro.”

How about you tell me why instead of just saying “TeEribLe AdViSe.”

The best option is going to be a USB drive that has an external key entry feature. Kingston IronKey has these and its as simple as enter a key and plug in. I use them at work and it works on all the major OSes. They’re not cheap though so if you want or are looking for a free solution then something like VeraCrypt portable and an encrypted container will be your next best option.