Building a PC

Let me know if this is the wrong subreddit please. I want to get into self hosting but I need to build a PC. I currently have a 2015 Lenovo laptop that I could use to run my server, but this is specifically about just the main PC, not the NAS.

What should I look for in a PC? These are my goals and uses for the PC. I do very light gaming like Tabletop Simulator and other board game games off of Steam (even my Lenovo fan handle them, take a while to load and have to run Discord separately on my phone, but it manages). Normal everyday stuff a household with young children will need, and self hosting. I’ll want to eventually do cloud storage, media like TV/movies, music, and notes. And potentially years down the line maybe run a local AI but that’s not really a primary goal.

I’d like something that’s upgradable. Should I go prebuilt or build myself (I’m willing to learn and pick stuff up like this fairly well).

Working with ChatGPT it recommends for a $750ish budget:
Ryzen 5 7600 / similar AM5 CPU
32 GB DDR5
1 TB NVMe SSD
Dedicated GPU
B650/B850-class motherboard
Quality 650–750W PSU
Normal mid-tower cas

Would I actually need something this powerful or is this too weak for what I need (I’m a complete noob).