In Proxmox 7.x LVM thin is the default local storage for VMs. However I prefer the old method of directory based storage for local storage. You can find this information in the proxmox wiki. These are my terse notes to get the job done.
This should only be done on a new installation of proxmox. We will be mounting the storage to /var/lib/vz. If you have data in that directory you will lose it.
Start by logging into the Proxmox gui. Click on cluster then select storage. Remove the lvm-thin storage.
Next you will need to ssh into your Proxmox node. Type the following to set everything up.
> sudo lvremove pve/data
> sudo lvcreate –name data -l +100%FREE pve
> sudo mkfs.ext4 /dev/pve/data
Add the following to /etc/fstab
> nano -w /etc/fstab
/dev/pve/data /var/lib/vz ext4 defaults 0 1
> sudo reboot
Once rebooted you can log into the gui and see your new local directory storage. Maybe someday I’ll switch to lvm-thin or zfs.