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If you want a development and test area such as a sandbox which you can deploy per team or developer, then you are going to have to use something like local stack for them to use locally (Ive never tried it) or you are going to have to write some IaC..
You can use Terraform or Cloudformation which allows you to repeatedly deploy a new environment and services repeatedly.
If you want a virtual machine for your users, then AWS offers Workspaces where you can create a golden image and then deploy/provision to each developer
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