Everyone is saying subdomains so I’ll try to give a reason for paths. Using subdomains makes local access a bit harder. With paths you can use 192etc/example, but if you use subdomains, how do you connect internally with https? example.192etc won’t work as you can’t mix an ip address with domain resolution. You’ll have to use 192etc:port. So no httpS for internal access. I got around this by hosting adguard as a local DNS and added an override so that my domain resolved to the local IP. But this won’t work if you’re connected to a VPN as it’ll capture your DNS requests, if you use paths you could exclude the IP from the VPN.
Edit: not sure what you mean by “more setup”, you should be using a reverse proxy either way.