Update developer docs related to Python virtual environments

[mhucka]

Is your feature request related to a use case or problem? Please explain

The current documentation explains how people can use virtualenvwrapper to create Python virtual environments. While it works, it's an older approach that is more complicated than newer ones. For example, venv is built into Python 3 and is considered the standard and recommended way to create virtual environments in Python 3. It's part of the Python standard library, meaning no extra installation is required.

Describe the solution you would prefer

Update the docs to describe using venv instead of virtualenvwrapper. Optionally also add guidance for another tool, perhaps uv.

How urgent is this for you? Is it blocking important work?

P2 – we should do it in the next couple of quarters