Hello,
The question is more about what is the use case, what will be the data you are going to use to create report.
Option 1 : If the data is inside D365 F&O than go with SSRS reports.
Option 2 : If the data required for report is out side D365 F&O , means you want to create a report using data from D365 F&O and other third party applications or some other application from D365 family than better to collect data at one place like Azure SQL or azure data lake and use reporting tool like Power BI to create report out of it.
Thanks