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Depends on the project, and it's maturity.

Web project

1. Local machine, with SQLite, MongoDB, and other lightweight solutions
2. Local machine, containers. This immediately precedes…
3. Production, or at least production-like environment, like Heroku or a Digital Ocean droplet

Libraries, like an SDK

1. Local machine
2. Live testing. The test code still runs on my local machine

Desktop application

1. Local machine
2. Flatpaks or distro-specific packages (RPM, Deb, etc.)