Upgrade python-arango and Pydantic; enhance README test instructions

README.md

@@ -620,14 +620,28 @@ print(gotham_residents)
 
 ## Running the Test Cases
 
-Set env variables in .env file, then load the env
+To run the test cases, start by running `docker compose up` to start the ArangoDB instance. Verify that the instance is running by navigating to http://localhost:8560 in your browser.
+
+Log in to the ArangoDB web interface and create a database named `test`.
+
+Next, create a `.env` file in the root directory of your project. Add the following variables to the file:
 
 ```shell
-set -a; source .env; set +a
+ARANGO_USERNAME="root"
+ARANGO_PASSWORD="password"
+ARANGO_HOSTS="http://localhost:8560"
+ARANGO_DATABASE="test"
 ```
 
-Afterwards run tests
+Once the `.env` file is set up, load the environment variables into your shell by running:
 
+
+```shell
+set -a; source .env; set +a
 ```
+
+Afterwards, run the tests using pytest to ensure everything is working as expected:
+
+```shell
 poetry run pytest
 ```

docker-compose.yml

@@ -13,7 +13,7 @@ services:
       - arangodb
 
   arangodb:
-    image: arangodb:3.6.2
+    image: arangodb:3.11.10
     ports:
             - "8560:8529"
     expose: