Why an RDBMS on the local though? Testing shit doesn’t make sense to name it as a regular piece of software.
I always build against a local DB?
For our desktop / LAN software the DB will always be local.
For web, it's easier since I'm likely to burn the DB down over and over during early development / prototyping. But I'm not using cloud hosted DB even in production, and don't expose Postgres outside the DB server, so I find it easier to work on this way.
EDIT: I also think that a default installation of VS includes SQL Server. I don't use it, so always have to adjust the installation and remove all of those bits, but I also have complete control of my environment. I could see an IT department just doing a stock VS installation with the required workloads.