Should service layer accept a DTO or a custom request object from the controller?

As the title suggests what is the best practice when designing service layers?. I do understand service layer should always return a DTO so that domain (entity) objects are preserved within the service layer. But what should be the input for the service layer from the controllers?

I put forward three of my own suggestions below:

Method 1:In this method the domain object (Item) is preserved within the service layer.

class Controller{    @Autowired    private ItemService service;    public ItemDTO createItem(IntemDTO dto)    {        // service layer returns a DTO object and accepts a DTO object        return service.createItem(dto);    }}

Method 2:This is where the service layer receives a custom request object. I have seen this pattern extensively in AWS Java SDK and also Google Cloud Java API

class Controller{    @Autowired    private ItemService service;    public ItemDTO createItem(CreateItemRequest request)    {        // service layer returns a DTO object and accepts a custom request object        return service.createItem(request);    }}

Method 3: Service layer accepts a DTO and returns a domain object. I am not a fan of this method. But its been used extensively used at my workplace.

class Controller{    @Autowired    private ItemService service;    public ItemDTO createItem(CreateItemRequest request)    {        // service layer returns a DTO object and accepts a DTO object        Item item = service.createItem(request);        return ItemDTO.fromEntity(item);    }}

If all 3 of the above methods are incorrect or not the best way to do it, please advise me on the best practice.