Personally I’m running option 2 with self hosted bitwarden. Sure, it’s a bit more effort to make it work and while it’s not perfect that’s what I’ve ended up with. The most convinient thing with that is that I can access my passwords whenever I have internet access with a browser without any need to install any software on the thing I’m using. Obviously that doesn’t mean that I’ll happily access the vault with whatever free-to-use endpoint I happen to encounter but it also gives an option to access whatever even if I’m borrowing a computer from a (trusted) friend and once I close the private window I used it’s gone. And even more often, when I’m accessing my credentials from a family shared computer, I can just log out and I don’t need to do any cleanup on the host which might get infected by our kids browsing something malicious or some other breach of security.

With keepassxc I’d need to worry about the database file, which is a bit different than logging out and closing browser. Your usage patterns might be different, but web-based hosting solution works for me.