Password Manager or Apple's?

Trying to decide whether to use an on-line Password Manager or Apple's Password App in settings, in Sonoma? If I use Apple's, does it automatically have to be in the cloud, which I would rather it not be. I don't use iCloud. I use my own cloud.

Or, maybe just creating a password protected .dmg file on my computer, with a password protected numbers file is the better way to go.

Opinions please?