Wipe Data Or Not

I just wanted to know what'll be difference between installing a new OS on an internal drive without wiping it vs after wiping it. I plan on upgrading my MBP '12 to Monterey and even though I'm going to backup my data just incase, I'm nervous about wiping my drive cause I've never done it before so hence my question

Also, is Monterey the most stable considering my specs or should I get Ventura?