Added Local setup readme file

Author: Vemarthula-Microsoft

docs/LocalSetupGuide.md

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+# Guide to Local Development
+
+This guide provides step-by-step instructions for setting up and running the **Modernize your code solution accelerator** locally for development and testing purposes.
+
+## Requirements
+
+Before you begin, ensure you have the following tools installed:
+
+• **Python 3.9 or higher** + PIP  
+• **Node.js 18+** and npm  
+• **Azure CLI** and an Azure Subscription  
+• **Docker Desktop** (optional, for containerized development)  
+• **Visual Studio Code IDE** (recommended)  
+• **Git** for version control  
+
+## Local Setup
+
+**Note for macOS Developers:** If you are using macOS on Apple Silicon (ARM64), you may experience compatibility issues with some Azure services. We recommend testing thoroughly and using alternative approaches if needed.
+
+The easiest way to run this accelerator is in a VS Code Dev Container, which will open the project in your local VS Code using the [Dev Containers extension](https://marketplace.visualstudio.com/items?itemName=ms-vscode-remote.remote-containers):
+
+1. **Start Docker Desktop** (install it if not already installed)
+2. **Open the project:** [Open in Dev Containers](https://vscode.dev/redirect?url=vscode://ms-vscode-remote.remote-containers/cloneInVolume?url=https://github.com/microsoft/Modernize-your-code-solution-accelerator)
+3. In the VS Code window that opens, once the project files show up (this may take several minutes), open a terminal window
+
+## Detailed Development Container Setup Instructions
+
+The solution contains a [development container](https://code.visualstudio.com/docs/remote/containers) with all the required tooling to develop and deploy the accelerator. To deploy the Modernize your code Solution Accelerator using the provided development container you will also need:
+
+• [Visual Studio Code](https://code.visualstudio.com/)  
+• [Remote containers extension for Visual Studio Code](https://marketplace.visualstudio.com/items?itemName=ms-vscode-remote.remote-containers)
+
+If you are running this on Windows, we recommend you clone this repository in [WSL](https://code.visualstudio.com/docs/remote/wsl):
+
+```bash
+git clone https://github.com/microsoft/Modernize-your-code-solution-accelerator
+```
+
+Open the cloned repository in Visual Studio Code and connect to the development container:
+
+```bash
+code .
+```
+
+!!! tip 
+    Visual Studio Code should recognize the available development container and ask you to open the folder using it. For additional details on connecting to remote containers, please see the [Open an existing folder in a container](https://code.visualstudio.com/docs/remote/containers#_quick-start-open-an-existing-folder-in-a-container) quickstart.
+
+When you start the development container for the first time, the container will be built. This usually takes a few minutes. Please use the development container for all further steps.
+
+The files for the dev container are located in `/.devcontainer/` folder.
+
+## Local Deployment and Debugging
+
+### 1. Clone the Repository
+
+```bash
+git clone https://github.com/microsoft/Modernize-your-code-solution-accelerator
+cd Modernize-your-code-solution-accelerator
+```
+
+### 2. Log into the Azure CLI
+
+• Check your login status using:
+```bash
+az account show
+```
+
+• If not logged in, use:
+```bash
+az login
+```
+
+• To specify a tenant, use:
+```bash
+az login --tenant <tenant_id>
+```
+
+### 3. Create a Resource Group
+
+You can create it either through the Azure Portal or the Azure CLI:
+
+```bash
+az group create --name <resource-group-name> --location eastus
+```
+
+### 4. Deploy the Infrastructure
+
+You can use the Azure Developer CLI (recommended) or deploy the Bicep template directly:
+
+#### Option A: Using Azure Developer CLI (Recommended)
+
+```bash
+# Initialize the environment
+azd env new <environment-name>
+
+# Deploy the infrastructure and application
+azd up
+```
+
+#### Option B: Using Azure CLI with Bicep
+
+```bash
+az deployment group create -g <resource-group-name> -f infra/main.bicep --query 'properties.outputs'
+```
+
+**Note:** You will be prompted for various parameters including:
+- **principalId**: The ObjectID of your user in Entra ID. To find it, use:
+  ```bash
+  az ad signed-in-user show --query id -o tsv
+  ```
+- **Azure AI Service Location**: Choose from supported regions (eastus, japaneast, etc.)
+- **Solution Name**: A unique name for your deployment
+
+### 5. Configure Role Assignments
+
+The Bicep deployment includes the assignment of appropriate roles. If you need to add additional permissions for local development, use these commands:
+
+```bash
+# Cosmos DB permissions
+az cosmosdb sql role assignment create \
+  --resource-group <resource-group-name> \
+  --account-name <cosmos-db-account-name> \
+  --role-definition-name "Cosmos DB Built-in Data Contributor" \
+  --principal-id <aad-user-object-id> \
+  --scope /subscriptions/<subscription-id>/resourceGroups/<resource-group-name>/providers/Microsoft.DocumentDB/databaseAccounts/<cosmos-db-account-name>
+
+# Azure OpenAI permissions
+az role assignment create \
+  --assignee <aad-user-upn> \
+  --role "Cognitive Services OpenAI User" \
+  --scope /subscriptions/<subscription-id>/resourceGroups/<resource-group-name>/providers/Microsoft.CognitiveServices/accounts/<azure-openai-name>
+```
+
+### 6. Create Environment Files
+
+Navigate to the backend directory and create a `.env` file based on the provided `.env.sample`:
+
+```bash
+cd src/backend
+cp .env.sample .env
+```
+
+Fill in the `.env` file with values from your Azure deployment. You can find these in:
+- Azure Portal under "Deployments" in your resource group
+- Output from the `azd up` command
+- Azure resources directly in the portal
+
+### 7. Set up Virtual Environments (Optional)
+
+If you are using `venv`, create and activate your virtual environment for the backend:
+
+```bash
+# Backend setup
+cd src/backend
+python -m venv venv
+
+# Activate virtual environment
+# On Windows:
+venv\Scripts\activate
+# On macOS/Linux:
+source venv/bin/activate
+```
+
+### 8. Install Python Dependencies
+
+In the backend directory with your virtual environment activated:
+
+```bash
+pip install -r requirements.txt
+```
+
+### 9. Install Frontend Dependencies
+
+In the frontend directory:
+
+```bash
+cd src/frontend
+npm install
+```
+
+### 10. Run the Application
+
+#### Start the Backend API:
+
+From the `src/backend` directory:
+
+```bash
+uvicorn app:app --host 0.0.0.0 --port 8000 --reload
+```
+
+#### Start the Frontend:
+
+In a new terminal from the `src/frontend` directory:
+
+```bash
+npm run dev
+```
+
+### 11. Access the Application
+
+• **Frontend:** Open a browser and navigate to `http://localhost:3000`  
+• **API Documentation:** Navigate to `http://localhost:8000/docs` for Swagger documentation  
+• **API Health Check:** Navigate to `http://localhost:8000/health`
+
+## Debugging the Solution Locally
+
+### Backend Debugging
+
+You can debug the API backend running locally with VSCode using the following `launch.json` entry:
+
+```json
+{
+  "name": "Python Debugger: Modernize Code API",
+  "type": "debugpy",
+  "request": "launch",
+  "cwd": "${workspaceFolder}/src/backend",
+  "module": "uvicorn",
+  "args": ["app:app", "--reload", "--host", "0.0.0.0", "--port", "8000"],
+  "jinja": true,
+  "envFile": "${workspaceFolder}/src/backend/.env"
+}
+```
+
+### Frontend Debugging
+
+For debugging the React frontend, you can use the browser's developer tools or set up debugging in VS Code with the appropriate extensions.
+
+### Agent System Debugging
+
+To debug the SQL agents system:
+
+1. **Enable debug logging** in your `.env` file:
+   ```
+   APP_LOGGING_LEVEL=DEBUG
+   ```
+
+2. **Monitor agent interactions** through the application logs and WebSocket messages
+
+3. **Test individual agents** using the API endpoints directly
+
+## Using Docker for Local Development
+
+### Run with Docker Compose
+
+```bash
+# Build and start all services
+docker-compose -f docker/docker-compose.yml up --build
+
+# Run in detached mode
+docker-compose -f docker/docker-compose.yml up -d --build
+```
+
+### Access Services
+
+• **Frontend:** `http://localhost:3000`  
+• **Backend:** `http://localhost:8000`
+
+## Troubleshooting
+
+### Common Issues
+
+**Python Module Not Found:**
+```bash
+# Ensure virtual environment is activated
+source venv/bin/activate  # Windows: venv\Scripts\activate
+pip install -r requirements.txt
+```
+
+**Node.js Dependencies Issues:**
+```bash
+# Clear npm cache and reinstall
+npm cache clean --force
+rm -rf node_modules package-lock.json
+npm install
+```
+
+**Port Conflicts:**
+```bash
+# Check what's using the port
+netstat -tulpn | grep :8000  # Linux/Mac
+netstat -ano | findstr :8000  # Windows
+```
+
+**Azure Authentication Issues:**
+```bash
+# Re-authenticate
+az logout
+az login
+```
+
+**CORS Issues:**
+• Ensure API CORS settings include the web app URL  
+• Check browser network tab for CORS errors  
+• Verify API is running on the expected port
+
+**Environment Variables Not Loading:**
+• Verify `.env` file is in the correct directory  
+• Check file permissions (especially on Linux/macOS)  
+• Ensure no extra spaces in variable assignments
+
+**Agent Initialization Failures:**
+• Verify Azure AI Foundry endpoint is correct  
+• Check Azure OpenAI model deployments are available  
+• Ensure proper authentication and permissions
+
+### Debug Mode
+
+Enable detailed logging by setting these environment variables in your `.env` file:
+
+```
+APP_LOGGING_LEVEL=DEBUG
+AZURE_OPENAI_API_VERSION=2024-08-01-preview
+```
+
+### Database Issues
+
+**Using a Different Database in Cosmos:**
+
+You can set the solution up to use a different database in Cosmos. For example, you can name it something like `modernize-dev`. To do this:
+
+1. Change the environment variable `AZURE_COSMOS_DATABASE` to the new database name
+2. Create the database in the Cosmos DB account from the Data Explorer pane in the portal
+
+---
+
+For production deployment instructions, see the [Deployment Guide](./DeploymentGuide.md).