It is a bad idea to use a backup drive for anything else except backups. By using a backup drive for multiple purposes you increase the risk of something going wrong with the drive & volumes. A backup is meant to be there in case of emergency so you want to minimize the chances of something causing the backup from becoming damaged or corrupted.
Plus, what about the data on the other partitions/volumes of the "backup" drive? Backing up data from those other partitions/volumes to the backup partition makes no sense since if the drive fails or becomes damaged, then both the data & the backup are lost at the same time since they are stored on the same physical drive.
In addition, people usually realize much later that one or more of the multiple partitions is too small which then requires erasing the whole drive and starting over which requires lots of time and moving lots of data around. Get at least one dedicated drive for your backups, and another drive for any other uses (bootable external, or external data drive). Using multiple APFS volumes within a single Container is different since each APFS volume within a single Container shares the full storage space of the Container. However, backups should be stored on their own dedicated drive and should not be shared with a bootable OS or data drive.
With M1/M2 Macs with Apple Silicon, you will need to install macOS to the external drive if you want a bootable external drive. Previously it was possible to make a bootable clone of the internal drive, but beginning with macOS 11.x Big Sur the new security features are making bootable clones very difficult if not impossible. A respected developer of one of the cloning apps has already mentioned that bootable clones are a thing of the past on Macs and currently is a "best effort". There are multiple reports on these forums where a recent macOS Monterey update may in fact prevent the creation of bootable clones on M1/M2 Macs with Apple Silicon.
https://bombich.com/kb/ccc6/cloning-macos-system-volumes-apple-software-restore
You should always have frequent and regular backups of your computer and all external media (including the cloud) which contains important & unique data.