Inside for most pumps is better as there is less of a chance to leak, external if the pump is a model that gives off way too much heat (not really a problem anymore with our efficient pumps) or external if you need extra head pressure for moving water to a different floor in the house (plumbing sump in a different room)
Internal is first choice - Saves you a penetration thru the sump and between the sump bulkhead and the pump in and pump out 3 potential spots for water to leak.
Even for big systems pumps like the Abyzz, and the Monsoon are fully submersible and rated up to 8000gph.
I was considering the external to reduce heat but didn’t realize the current pump options give off less heat. I’m a big fan of minimizing leaks. Unless someone comes up with a major pro for external…….internal is the smart way to go.
The better option is what works for you and your setup. I prefer external. I run vetra l2 external on my main aquarium. When you run external the heat is disapated into the air.
On my frag tank. I run m2 internally due to glass sump layout on waterbox.