[aramalipoor]

It really depends on the company and developers preferences. For our company's case we do have a "dev" AWS environment for a couple of reasons:

1) To avoid having a side-IaC for your dev env (e.g. using docker-compose/local k8s/localstack) which could take same time as your prod-IaC (terraform/CloudFormation) to prepare. Instead of hours preparing/debugging local dev we can work on great features or refactoring some tech-debt in the real code.

2) Since we have many other teams and upstream dependencies it's much easier to deploy on a AWS when testing complicated features. In an ideal world you shouldn't need it but unfortunately it's never ideal world.

3) Local dev solutions could easily end up with "but it worked on my laptop" due to various reasons from Docker host configs, to localstack deviations from real AWS resources, etc.

But at the end of the day you should see what makes more sense for you :) I guess for many people spending time on preparing a great local dev using docker-compose/k8s/swarm/localstack is cheaper than using AWS for dev anyway.