What is your company's approach to development environments?

We have been investigating various approaches to improving the development environments for engineers. These include:

1. Run directly on work machines 2. Run dev containers locally with VSCode 3. Run a cloud environment similar to staging/production

We have python 3 services (each with APIs and Task workers) with postgres, redis and a few other dependencies. We are around 60 in the engineering org.

Curious what other companies around this level of complexity have found works well for their teams.