feat: Update README.md and CONTRIBUTING.md

Author: waleedlatif1

CONTRIBUTING.md

@@ -168,9 +168,38 @@ Docker provides a consistent development environment with all dependencies pre-c
    - Edit files in your local directory
    - Changes will be automatically reflected thanks to hot-reloading
 
-### Option 2: Manual Setup
+### Option 2: Using VS Code / Cursor Dev Containers
 
-If you prefer not to use Docker:
+Dev Containers provide a consistent and easy-to-use development environment:
+
+1. **Prerequisites:**
+
+   - Visual Studio Code
+   - Docker Desktop
+   - [Remote - Containers](https://marketplace.visualstudio.com/items?itemName=ms-vscode-remote.remote-containers) extension for VS Code
+
+2. **Setup Steps:**
+   - Clone the repository:
+     ```bash
+     git clone https://github.com/<your-username>/sim.git
+     cd sim
+     ```
+   - Open the project in VS Code
+   - When prompted, click "Reopen in Container" (or press F1 and select "Remote-Containers: Reopen in Container")
+   - Wait for the container to build and initialize
+3. **Start Developing:**
+
+   - All dependencies and configurations are automatically set up
+   - Use the provided aliases (like `sim-start`) to run common commands
+   - Your changes will be automatically hot-reloaded
+
+4. **GitHub Codespaces:**
+   - This setup also works with GitHub Codespaces if you prefer development in the browser
+   - Just click "Code" → "Codespaces" → "Create codespace on main"
+
+### Option 3: Manual Setup
+
+If you prefer not to use Docker or Dev Containers:
 
 1. **Clone the Repository:**
    ```bash

README.md

@@ -39,7 +39,46 @@ This will start Sim Studio at http://localhost:3000 with a local PostgreSQL data
 
 In `.env`, configure Authentication secrets (required for login functionality) and optionally a Resend API key (for authentication emails).
 
-## Manual Setup
+## Development Options
+
+### Option 1: Docker (Recommended)
+
+The quickest way to get started with development:
+
+```bash
+docker compose up -d
+```
+
+Or use the convenience script for automatic setup:
+
+```bash
+chmod +x start_simstudio_docker.sh
+./start_simstudio_docker.sh
+```
+
+### Option 2: VS Code / Cursor Dev Containers
+
+For a great development experience with VS Code or Cursor:
+
+1. **Install Prerequisites**
+
+   - Visual Studio Code
+   - Docker Desktop
+   - Remote - Containers extension for VS Code
+
+2. **Open in Container**
+
+   - Open the project in VS Code
+   - When prompted, click "Reopen in Container" (or use F1 → "Remote-Containers: Reopen in Container")
+   - Wait for the container to build and initialize
+
+3. **Start Developing**
+   - The container automatically sets up your environment
+   - Type `sim-start` in the terminal to run the development server
+
+This method works with GitHub Codespaces too - just click "Code" → "Codespaces" → "Create codespace on main".
+
+### Option 3: Manual Setup
 
 If you prefer not to use Docker: