I've used the documentation below several times.

I already installed it in Rocky Linux and Centos Stream, in versions 8 and 9.
To use local resources, you need to create a new Data Center and set the Storage Type to Local. Then add the Host.
Or with the host already added in Data Center Default, click on Management -> Maintenance to put the host in Maintenance. Then click on Management -> Configure Local Storage to configure a local directory.

My recommendation: Create a Thin LVM, format it in XFS and mount it in a writable directory for the vdsm user.
I always use XFS because I can defrag the volume with it active.

Cheers!