Well, up until the last year when switching between iPhones I would always backup the old one to my Mac first and then restore this backup to the new iPhone. I guess I had just inherited this process from the old Windows days.
Last year I still backed my old iPhone up, but decided to try the direct transfer for the first time. It went super smooth, transferring both my eSIM and physical SIM lines without a hitch. I still needed to redownload all of my 3rd party apps, but most of them kept their logins intact, so worked straight away. Took me about 15 minutes in total. Basically, I was sold. 😉
As others have mentioned, setting up afresh (depending on your particular iPhone setup) can take ages, so I would try the direct transfer first and then, if anything feels wrong, you can always use more laborious solutions, like Restore.