Hi Wodel,
I can't comment on the Ceph portion yet (for better or worse we have EMC or Pure storage mostly, just 1 lonely Ceph cluster).
We have undertaken a move from ubuntu 18.04 to rocky linux 9. We focused on upgrading non-hypervisor nodes first, so control, monitoring, util nodes, then Live Migrated VMs around, so we could remove hypervisors out of the cloud, rebuild, pop them back.
No downtime for us, just took a bit longer. For Y - Z, not a lot of considerations, we had a swag of Openstack updates in the middle of this too.
I have that ceph cluster coming, it's ubuntu 18.04 and some out of date version Ceph. I would be interested in your results with your ceph approach. I have looked yet, but I am hoping I can do it with no downtime
Cheers
Michael