You'll run into occasional issues (e.g. if everyone is trying to run default node.js on default port) but with some basic guardrails it feels like it should be OK?

I'm remembering back to when my old company ran a lot of PHP projects. Each user just had their own development environment and their own Apache vhost. They wrote their code and tested it in their own vhost. Then we'd merge to a single separate vhost for further testing.

I am trying to remember anything about what was painful about it but it all basically Just Worked. Everyone had remote access via VPN; the worst case scenario for them was they'd have to work from home with a bit of extra latency.