Selfhosted
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I wasn't able to get a clear response but I can say that they are primarily going to use it for writing and storing code like a Github repo, plus installation of 2-3 programs whose names I couldn't recognise.
They could use Github itself, but I know they know this too so but deliberate chose to work this way. I could probably suggest a software like Gitea or Forgejo for this purpose, but I suppose they aren't in need of that.
Github doesn't need a server. It is a cloud service.
Why can't they run the programs locally?
This makes sense. Sometimes its better to run 'helper' programs in a remote container so configs and such are synced.
If they are trying to setup an inference server for cursor or something, though, you will need to run OSX. Linux does not support Metal acceleration (last I checked).