Looks like SATA SSDs are definitely more stable for the PS5. Probably due to the controllers being more mature. Going with an enclosure using NVME SSD is more risky as its still early days for these controllers, but they are fast, especially coupled with a USB3.2 gen2 port running at 10Gb/s. There are 3 more popular ones on the market at the moment and it seems the ASM2362 tends to work better with the PS5.
Ya, for external storage wise, sata SSD is good enough, nvme just overkill and the interface might not take full advantage of it.
It's better to wait for Sony to confirm the compatible nvme ssd for the nvme expansion slot before investing in one, that will utilize the extra speed which will also allow PS5 game to be install in it.

