But compare dev productivity lost due to service downtime with that of each new SWE in your org burning time to A) setup their own unique snowflake of an environment and B) futzing and debugging it when it breaks or there's a software update.
Anyone good is doing that even if you tell him not to. One size does not fit all.
Dev servers are arguably much simpler to provide without issues.
None of that is possible in a centrally-managed dev VM setup. When the VMs go down, you send your dev team home until it’s fixed. You’re still paying their salaries while you pay another team to make them productive again.
Reason 743 why monorepos create more problems than they solve
There are mitigations and a couple of hours of dev downtime is imo not the end of world. Sure, prod incident could overlap with a devpod incident but sounds like they still have the choice to do local dev.
Lost revenue is usually more impactful than the occasional lost developer time.
Better to have hundreds, or * gasp * thousands of engineers having to fix local package dependency problems on their computers every other day. Much better than those engineers having to keep that gigantic context loaded in their mind so that they fix those local problems.
That effort spent for maintaining local environments and navigating the package management hell is effort not being spent on creating actual code.
All good until you have an outage. Then your development team’s productivity drops to exactly zero while you fix it and your entire production environment is now potentially vulnerable to defects you can’t fix until the development environment is fixed (better hope it stays running). This is when companies realize that the development environment is actually a service and it needs higher SLA targets than production, but it will never get the attention that it needs to achieve those targets (because it’s just dev, right?).