My boy is in a pushchair, if he falls asleep I recline it back. It doesn’t lay flat flat but at an angle. He loves watching the world go by, I can still see him with the hood up as there is a viewing panel.
Do whichever you are comfortable with, when I had my LG my pushchair was adaptable so I could have her facing me or facing forward when in the seated attachment.
I’ve got two (a travel one and the one that came with my system). The travel system is adaptable to face me or the world, and the travel one is world facing but both recline and lie flat. (Mamas and papas ocarro & joolz aer
We had our girl facing out for a while from 6 months but we’ve turned her back to facing us as I feel like she just liked seeing us out and about if we go on like a nice wooded walk we might change it but just out and about she faces us.
My travel system has a pram seat which can lay back I have the Icandy peach