Earlier quoted context omitted.
That's wishful thinking. If there's state in that virtual machine, it's probably either stored on the physical host or in a SAN. If it's in the physical host, it has to be fished out of that machine or restored from a backup. If it's a SAN, you can lose your virtual machine if the SAN goes down. I've seen both happen. Actually, a single machine with RAID is surprisingly stable. A provider like Hetzner can switch out…
Thats not wishful thinking. I did it from day one with my startup with GKE. You can blow up any of my servers, and a new one gets spun up and dockers deployed while the glitch is load balanced around. All for only a few hours of work. GKE has given me the infrastructure of a 10 million dollar company, with me as the IT guy doing 1h or less a week of IT work. I would not be able to do this on a $35 hertzer machine.
In fact, it's very commonly happening to instances, probably ones you have.
But if you're running on AWS with their EC2 instances for your application, then it's not more reliable than a single chunk of hardware in my experience (there are special cases, some hardware is just crappy)