At my current company we do exactly this. It’s nice because it’s someone else’s problem to make sure my dev environment works, I can recreate my dev environment

At my current company we do exactly this. It’s nice because it’s someone else’s problem to make sure my dev environment works, I can recreate my dev environment with a single command, and I have a shareable URL to my Rails instance that anyone on the eng VPN can use (makes it easy to show works in progress to teammates or to the product team). It does kind of suck in some ways though. I can’t develop without internet, and debugging is worse than debugging locally. The debugging issue could probably be alleviated with some more investment in developer tooling/editor integrations.