The sole purpose is to have a shared dev environment accessible for all developers. It’s going to be hard to replicate the data in DB in all local machines. When a developer builds something and pushes code to a repo, it’s hard for other stakeholders to test, add data, etc. This helps everyone to see changes on the fly.
For instance, when a developer creates a collection, another person can add the data. then, both can test the APIs and continue the development.