VPS Server use cases?

What is the purpose of a VPS in relationship to SEO for hosting a website? Does it have its own DNS like godaddy, or hostinger where i register domain "registerhere" and point the the "godaddy" dns records there? It seems like a VM machine really where I can allocate the size, space etc but it is not like a hosting correct?

I see it mentioned all the time but wondering the why on this, I always thought the host is handling size, memory and cpu of the server that host your website and you can pay them for more.

A VPS gives you much more control than shared hosting, letting you manage your own server resources like CPU, RAM, and storage. For SEO, it does not directly boost rankings, but better speed, uptime, and stability can improve performance. Your domain (from GoDaddy or Hostinger) stays separate you simply point its DNS (A record) to your VPS IP, since a VPS does not handle DNS by default.

VPS is like your own server, you control it, install stuff, faster for SEO sometimes, DNS still from domain provider.