Not OP, but I think it depends heavily on your use case and where you are deploying... I've used containerized DBs as well as leaned into hosted DBs in a given cloud environment. I've tended to favor PostgreSQL for container dev simply because it is well supported in pretty much every first and second tier cloud provider out there.

It really comes down to YMMV... Sometimes for a singular app surface, it's easier to just use a compose file that includes the database. mailu/mailcow is a good example... you don't necessarily want to comingle email on the same server as other services.

That said, if you need to share a single DB or set of DBs across an applicaiton with several instances/deployments, then it makes much more sense for a central deployment. I almost never do my own host level install, instead relying on cloud hosting and mgt. The only real exception is MS-SQL on internal servers... MS-SQL in Docker is barely acceptable for dev, and missing a few key features you may actually want/need.