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I did Wordpress development for many years and only just recently switched my projects to serverless stack, but my suggestion would be to give https://roots.io/ a shot, specifically their Trellis project for your needs. It requires you to run Ubuntu 22.04, so if that suffices then Trellis does all the heavy lifting thereafter through an easy CLI and Ansible recipes configured with YAML files. In my opinion, the Roots.io toolkit is the most sane way to do Wordpress in 2023. Trellis ships with PHP 8.1 be default but can be configured to install 7 if so desired with a single line if code. The documentation is thorough and the discourse community is very helpful. Make sure to install the trellis-cli and this vagrant plugin https://github.com/TypistTech/vagrant-trellis-sequel along with Sequel Pro for managing databases.
A simple efficient CLI stack that works well is WordOps.