If you're choosing between those two, then I find Vue still better at this than react, where you have to go full JS rendering. Vue 2 had inline-template support which allowed progressive enchantment of HTML. Vue 3 however dropped support for that (there are few workarounds).
All in all both frameworks aren't too great at sprinkling dynamic functionality on server-side rendered HTML.
If we consider Vue 3 and React - they are not great at progressive enhancement because they are not built for that purpose if you're not using corresponding server-side renderer. If your backend return simple HTML - there's no way to mount Vue3 or React on top of that HTML and be sure that it won't be fully replaced by JS-rendered HTML because it has small differences between them.
Vue-Petite is definitely interesting and I likely will use it in the future, but talking strictly about Vue 3 and React - they are more suitable to SPAs than to progressively enhance your HTML.
