Best option is to directly NAT traffic from VPS to your home server, either directly to your IP or set up a wireguard peer and send traffic via wireguard to your local and do the SSL/TLS termination on your local.
You are best exposing just 443 port on the VPS and moving that traffic over wireguard. Server will have your local public key on the server, and you could implement a wireguard key rotation to change them frequently.
Traffic sent back will be encrypted with the certificate, and even if they get the wireguard server key, you can rotate it, but still they will see encrypted packets.
It depends what kind of things you’re doing on your local. If it is just a website thing, then reverse proxy is fine. Anything other than that, NAT would be cleanest one.
LUKS on the disks would encrypt it the data on the block storage level, and, in theory, they should not have a way of reding block storage files directly. But since it is a VPS they can, technically, gather data from host memory.
Next step might be going down a dedi server route, Luks encryption on disks. Only thing thats needed there would be sufficient network pipe.