For the most part people are using Postgres on Heroku or another major Postgres provider like Azure and other Postgres like things such as Supabase. But it really depends what you mean by “works well with.”
Prisma gives you a lot of extra functionality that you would expect from a query builder or ORM but some developers are fine just writing raw queries for their database.
Redwood can be fairly easily hooked up to any database that has a GraphQL API such as FaunaDB and really any database with a JavaScript driver can be wired up to Redwood. There has also been discussion around JSON databases like LowDB.