On the server-side, there's Bottlerocket OS [1] (Amazon). They use A/B partitions for upgrades, and the idea is that you just run containers for anything non-base. Boot containers are used to do custom configuration at boot, and host-container (or DaemonSet, if you run K8S) is used for long-running services.
[1] https://github.com/bottlerocket-os/bottlerocket