Start with the distribution system
The most important difference is not the compressor. It is how conditioned air reaches the rooms. A central system relies on ducts and registers; ductless systems put smaller air handlers in or near the spaces they serve.
If a home already has correctly sized, sealed, insulated ducts in useful locations, replacing the central equipment can be straightforward. If there are no ducts, or the existing ducts are badly located or leaky, ductless can avoid rebuilding a large hidden part of the HVAC system.
Zoning and part-load use
Ductless systems naturally divide the building into zones. That is valuable when occupancy varies by room. Central systems can be zoned too, but zoning dampers, bypass concerns, minimum airflow, and equipment control strategy have to be designed as a system.
Do not confuse zoning with permission to ignore load calculations. Oversized equipment can still short-cycle, control humidity poorly, or spend too much time at inefficient operating points.
Comfort details that equipment labels miss
A central system can provide very even mixing when the duct system is designed well. Ductless equipment can provide excellent comfort too, but indoor-unit placement, door positions, room geometry, throw pattern, and condensate routing matter. One wall head should not be assumed to condition every closed room around it.
For either system, installation quality can dominate the result. Refrigerant charge, airflow, line-set practices, condensate management, controls, and commissioning all matter after the model number is chosen.