When virtual staging is the better fit
If the rooms already exist, are empty, and can be photographed well, virtual staging is the direct way to show furnishing, atmosphere, and possible use without rebuilding the whole scene.
When 3D visualization becomes necessary
For new developments, repositioning projects, heavy refurbishments, or projects that are not photographable yet, 3D visualization is more reliable because angle, architecture, and materials can all be constructed intentionally.
How to avoid choosing the wrong format
Start with the source material. If photos do not exist yet or the future architecture differs strongly from the current condition, virtual staging will rarely communicate the right result.