I won’t provide any spoilers because Chris’ writeup is really good with a nice real world example.
The only commentary I will add is using container queries for everything — including fluid typography and space — might feel like a good idea on paper, but you lose global flow and rhythm by doing that.
For example, if you use container units for padding, as each component is slightly differently sized, there’ll be no discernible consistent space, resulting in a messy looking UI. Instead, leveraging tools like Utopia will give you a consistent viewport-based solution and it’s that solution that’s providing needed consistency, allowing container units to be used to respond to the various states a container could be in instead.
Right tool, right job.