I use a lambda stack for a side project of mine and I just deploy to my "dev" stage to test anything. I hate the turn around time so much but the last time I attempted to use serverless offline I ran into tons of little issues and the inability to talk to some services without jumping through hoops. I don't mean to say this is the current state of things and when I pick back up this project in the next month or so I plan on retrying to use the offline workflow since I hate long "write code"->"see code working" turnarounds, it just kills my productivity. I'm happy to use and pay for my dev Aurora/S3/DynamoDB/etc instances/services, I just hate waiting for code to deploy to test a single change.
Cloudflare has been doing some really cool and interesting things lately and fully-local development (with 1st party support) is very attractive.
Edit: Happening at 16:00 - 16:30 UTC, 2022/01/07 as to not confuse future folks.