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You can use Blender with the GMDC plugin, though there are fewer tutorials so you're a bit more on your own with that one. Blender has some advantages over Milkshape when it comes to modeling and such, and it's supposedly also easier to get smoother joint assignments.
Milkshape is a bit more "reliable" in that there are more tutorials and more experienced users, so if you're stuck, it's easier to ask for help and get it. There are also some neat player-made plugins that can help for the modeling or UVmapping part, though I think Blender probably has some of those functions covered.
Another alternative is to use both programs - you can do modeling/UVmapping/etc. in Blender, and the rest in Milkshape. I tend to do that if I'm working on meshing projects that need joint assignments or other adjustments that would otherwise require the GMDC plugins or similar (I often use Blender for meshing/UVmapping, but I don't use the Blender plugins since I'm more used to do those parts in Milkshape).
Not sure how the 3.X versions are, but Blender 2.X and Blender 4.X have the feel of two entirely different programs (the entire interface has been scrambled, so you basically have to relearn everything because shortcuts, menus, placement of all these, and half the tool names have changed). If you're trying to reverse-engineer (Forward-engineer?) an old tutorial using an older Blender version, try looking up what the tools were named/placed in the old version compared to the new version.