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For the cert part, LetsEncrypt specifically recommend against that: https://letsencrypt.org/docs/certificates-for-localhost/

For the dns part, I honestly think a hosts file entry is more flexible, as you can support environments using vms/containers etc with a guest that has a dhcp address.

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The security issue comes in when you ship the private key - if you are following best practices - won't the private key be different for each domain / managed in a better way?

So, now you're going to give each member of your team a way to authorise valid certificates for your domain? Great, I don't want to imagine what your HR/security vetting process will be after the first abuse of that power.

I had not thought about that...great points!

This is way simpler in that case!

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