Is it educational to do this on a VM or should I break out my old thinkpad?
These days the ARM64 processor on the Raspberry Pi 5 is probably fast enough to just build natively on it, no cross-compilation necessary. Cross-compiling adds a metric ton of complexity.
Targeting a known set of virtual devices makes a lot of things much easier when building LFS. Dev ux is also much nicer:, you get faster restarts, a socket and optional snapshots to go back to a known less broken state.