What Linux distribution is recommended for Sentinel - 1 data processing with SNAP 8?
I think the recent LTS version of Ubuntu is a good choice.
Ubuntu 20.04.1 LTS
However, most Linux distros should work fine if they are not too old.
Many people use SNAP on Ubuntu 20.04.X LTS, but if you are associated with an institution it is best to ask other users or IT staff for advice. The biggest differences between linux distros are in package management and security policies where other users who use the same distro can rescue you when things go bad.
Given suitable hardware, SNAP 8 should work on most current linux distros. If you are using very recent hardware, linux drivers may not yet be available. Typically, the display, audio, and camera support can be problematic. Unless you are in contact with others who have linux running on the same hardware, you should search for linux problem reports specific to your hardware, and maybe be prepared to install a different display card.
I’m considering creating a Hyper-V virtual machine with everything I need to download and process Sentinel-1 data with Snappy. Or maybe use Docker, but I’m still not sure.
In Windows I had no problems, but I think it may be a better option to work in Linux.
Linux has many advantages, particularly when running lots of jobs in loops, but for a virtual machine you are splitting RAM so unless your system has ample RAM you can end up with neither Windows nor Linux working well for memory intensive tasks, in particular, it reduces the number of jobs that can be run effectively in parallel. Note that Hyper-V passthru has been recommended in the past, but this is no longer the case.