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Is this not technically what https://containers.dev/ is?

Well, actually we plan to use the Dev Containers specification in the background. If my understanding is correct, the specification defines a way to parameterize a container to become a Dev Container, and how to run the specific image inside. They tend to put every required tool into a single image, but our approach is different. We try to dedicate an own container for each tool because then we gain some advantages (containers can run on different hosts, easier to change tools, better isolation). Our solution can be achieved in other ways like docker compose, but with DEM a Dev Env is more similar to a classical embedded IDE.

A bit of a sidebar from your original question but a problem I was working to solve in the hardware DevEx space was sharing access to specialised lab hardware like timing clocks, spectrometers and such but over the network. I paired up with an EE in my last org, he knocked out PCB and CAD designs while I worked to integrate APIs into common libraries our devs could use. We never completed the project but perhaps this is of interest to you.

It sounds interesting! How come you didn't finish it? Are you allowed to share more info?

I took another job and shortly after my colleague moved back to his old job at Tesla, coincidentally I believe he was replicating internal tooling they had at Tesla within the backplane he made.

Thanks for sharing this!