Home Assistant with ZWave USB-Stick in basement

Do you have HA installation based in the cellar?
How strong Zwave signal is?
Do you have any Zwave connectivity issues?

No.
It depends.
Sometimes, not very much anymore now that I have about 15 powered devices on the network.

Z-wave implements a mesh network. Devices with mains power (not battery powered), can act as repeaters to ferry commands to devices which are not in range of the controller. So the reliability of your network will depend not only on where the controller is, but how other devices are placed, so that there is always a strong chain of signal from the controller to other points in the network.

It should be possible to run a zwave network from a cellar, so long as you have sufficient powered devices that can chain the signal to your controller and back.

As far as the range of the signal - it really depends. It depends on the device, it depends on what materials the signal is passing through, etc. In my wood framed house, I can usually depend on signals being strong for 3-4 m or so even if there are a couple walls in the way. With more clear line of sight, triple that can still be solid.

I moved my HA server into a rack under the house. And I am using the ATEN UCE260 USB extender via CAT6 cabling to keep my Z-Wave stick in a relatively central location in the house.
The extender has an external power supply on the end where the stick is located. I tried an unpowered extender, but that failed every couple of days.
Current setup is running fine for almost one year now.

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