I've been keeping an eye out for a good, free software development tool like this but I've also seen nothing viable yet. The main problem really seems to be that the required hardware is expensive and resource intensive which keeps most of the talent from being able to work on it. Once the required hardware becomes more common place I think multiple free software versions will pop up to fill the niche.
Have you looked at Continue.dev? It’s open source and allows both local/open source and commercial models. It’s definitely got challenges / bugs (particularly for remote dev) but I think is worth a look.
