As security best practice, do not use Local System:
Local System is a very high-privileged built-in account. It has extensive privileges on the local system and acts as the computer on the network.
MS Doc
On the "pro" side of this would be that using high-privileged account means that it's less likely to encounter any permission issue - or wait, is that a con? :)
A domain account (to include g/MSA) is required in some circumstances like an FCI, but not all. For a stand-alone SQL Server install, virtual account is acceptable. Please read above linked doc for more info. To paraphrase for SQL Server on Windows:
If domain-joined, then use gMSA or MSA.
If not domain-joined, then use virtual account.
Quoting same doc:
Always run SQL Server services by using the lowest possible user
rights. Use a MSA, gMSA or virtual account when possible.