MKV is the format that hoards: video, a dozen audio tracks and every subtitle, all in one box. It was born in 2002, the open-source Matroska project, and its real weak spot is playing on TVs, iPhones and editors that never learned to open the box.
AVI is the veteran of desktop video: dependable in 1995, cranky about everything invented since. Audio Video Interleave: an early container that predates streaming and most codecs you'd use today. That makes it the right destination when what you need is opening old archives and humoring legacy Windows tools.