It's good for home use, but --- and I am bias I guess because of my background --- where it really shines is corporate connectivity. If I joined a company as a security person and it was running some horrible OpenVPN access VPN for its dev team right now, one of my top action items would be to replace it immediately with Tailscale.
But except that deploying Wireguard* on a VPS for bypassing censorship/georestrictions is quite nice and cheaper compared to many paid ones.
* Tailscale and Zerotier aren't really needed if you want to route all your traffic thru a single machine, wireguard itself does exactly this.
If possible, just bringing the node/servicenin question "into" the wireguard/tailscale network would be better. But good luck getting a hospital to allow you to connect your tailscale to their patient record db (or what have you - obviously in this case you'd hope they have a solid vpn and give you access.. ).
For the use case of "talk via vm through mullvad exit node" i suppose you could set up Mullvad on the vm, and tailscale on the vm with Mullvad vpn as exit node, then join all your other nodes to tailscale.
Tailscale would replace how you connect to your vm, not mullvad.