I don't even have experience with Terraform at all...
I'm using something different myself: a Docker Compose + reverse proxy config + some other support files, pushed to a private GitHub repo, which then triggers a GitHub Actions workflow that leads to the repository being pulled on the VPS and the infrastructure to be "rebuilt" (docker compose up, reverse proxy graceful restart).
It's unclear if you even know what terraform is, because the system you described has little to do with it.
Terraform would be the code that brought that VM into existence.