Local Development as described does not work offline

[mikeohyan]

Following the Local Development guide found here: https://neon.tech/guides/local-development-with-neon#local-postgresql
The suggested configuration does not work in an offline environment as is. It seems that the local-neon-http-proxy relies on the the use of the localtest.me DNS (https://readme.localtest.me/).

My fix was to spool up dnsmasq to ensure the domain (and subdomains) could resolve when there was no internet connection.

[dhanushreddy291]

@mikeohyan, thanks a lot for raising this issue, we are adding it in #2692

[danieltprice]

Thank you for reporting @mikeohyan