Where does Caddy live in a Kubernetes world -- or does it? (I'm not the most knowledgeable with either, so genuinely curious how these pieces all fit together).
(Not a Kubernetes user, so my answer is probably not the best.)
However I think in K8s world Caddy would make the most sense as an Ingress Controller. There is even a project as such: https://github.com/caddyserver/ingress
All traffic would terminate first at Caddy. Handling TLS, HTTP1/2/3, etc. Then passing it back to your application service/pod.