diff --git a/.devcontainer/.bashrc b/.devcontainer/.bashrc
deleted file mode 100644
index 769149f81..000000000
--- a/.devcontainer/.bashrc
+++ /dev/null
@@ -1,69 +0,0 @@
-# Sim Development Environment Bashrc
-# This gets sourced by post-create.sh
-
-# Enhanced prompt with git branch info
-parse_git_branch() {
-  git branch 2> /dev/null | sed -e '/^[^*]/d' -e 's/* \(.*\)/ (\1)/'
-}
-
-export PS1="\[\033[01;32m\]\u@simstudio\[\033[00m\]:\[\033[01;34m\]\w\[\033[33m\]\$(parse_git_branch)\[\033[00m\]\$ "
-
-# Helpful aliases
-alias ll="ls -la"
-alias ..="cd .."
-alias ...="cd ../.."
-
-# Database aliases
-alias pgc="PGPASSWORD=postgres psql -h db -U postgres -d simstudio"
-alias check-db="PGPASSWORD=postgres psql -h db -U postgres -c '\l'"
-
-# Sim specific aliases
-alias logs="cd /workspace/apps/sim && tail -f logs/*.log 2>/dev/null || echo 'No log files found'"
-alias sim-start="cd /workspace && bun run dev"
-alias sim-migrate="cd /workspace/apps/sim && bunx drizzle-kit push"
-alias sim-generate="cd /workspace/apps/sim && bunx drizzle-kit generate"
-alias sim-rebuild="cd /workspace && bun run build && bun run start"
-alias docs-dev="cd /workspace/apps/docs && bun run dev"
-
-# Turbo related commands
-alias turbo-build="cd /workspace && bunx turbo run build"
-alias turbo-dev="cd /workspace && bunx turbo run dev"
-alias turbo-test="cd /workspace && bunx turbo run test"
-
-# Bun specific commands
-alias bun-update="cd /workspace && bun update"
-alias bun-add="cd /workspace && bun add"
-alias bun-pm="cd /workspace && bun pm"
-alias bun-canary="bun upgrade --canary"
-
-# Default to workspace directory
-cd /workspace 2>/dev/null || true
-
-# Welcome message - only show once per session
-if [ -z "$SIM_WELCOME_SHOWN" ]; then
-  export SIM_WELCOME_SHOWN=1
-  
-  echo ""
-  echo "━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━"
-  echo "🚀 Welcome to Sim development environment!"
-  echo ""
-  echo "Available commands:"
-  echo "  sim-start    - Start all apps in development mode"
-  echo "  sim-migrate  - Push schema changes to the database for sim app"
-  echo "  sim-generate - Generate new migrations for sim app"
-  echo "  sim-rebuild  - Build and start all apps"
-  echo "  docs-dev     - Start only the docs app in development mode"
-  echo ""
-  echo "Turbo commands:"
-  echo "  turbo-build  - Build all apps using Turborepo"
-  echo "  turbo-dev    - Start development mode for all apps"
-  echo "  turbo-test   - Run tests for all packages"
-  echo ""
-  echo "Bun commands:"
-  echo "  bun-update   - Update dependencies"
-  echo "  bun-add      - Add a new dependency"
-  echo "  bun-pm       - Manage dependencies"
-  echo "  bun-canary   - Upgrade to the latest canary version of Bun"
-  echo "━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━"
-  echo ""
-fi 
\ No newline at end of file
diff --git a/.devcontainer/Dockerfile b/.devcontainer/Dockerfile
index 55662afb8..7fdfb7bca 100644
--- a/.devcontainer/Dockerfile
+++ b/.devcontainer/Dockerfile
@@ -1,38 +1,43 @@
-# Use the latest Bun canary image for development
-FROM oven/bun:canary
-
-# Avoid warnings by switching to noninteractive
-ENV DEBIAN_FRONTEND=noninteractive
+FROM oven/bun:1.2.22-alpine
 
 # Install necessary packages for development
-RUN apt-get update \
-    && apt-get -y install --no-install-recommends \
-       git curl wget jq sudo postgresql-client vim nano \
-       bash-completion ca-certificates lsb-release gnupg \
-    && apt-get clean -y \
-    && rm -rf /var/lib/apt/lists/*
+RUN apk add --no-cache \
+    git \
+    curl \
+    wget \
+    jq \
+    sudo \
+    postgresql-client \
+    vim \
+    nano \
+    bash \
+    bash-completion \
+    zsh \
+    zsh-vcs \
+    ca-certificates \
+    shadow
 
-# Create a non-root user
+# Create a non-root user with matching UID/GID
 ARG USERNAME=bun
 ARG USER_UID=1000
 ARG USER_GID=$USER_UID
 
+# Create user group if it doesn't exist
+RUN if ! getent group $USER_GID >/dev/null; then \
+        addgroup -g $USER_GID $USERNAME; \
+    fi
+
+# Create user if it doesn't exist
+RUN if ! getent passwd $USER_UID >/dev/null; then \
+        adduser -D -u $USER_UID -G $(getent group $USER_GID | cut -d: -f1) $USERNAME; \
+    fi
+
 # Add sudo support
 RUN echo "$USERNAME ALL=(ALL) NOPASSWD: ALL" > /etc/sudoers.d/$USERNAME \
     && chmod 0440 /etc/sudoers.d/$USERNAME
 
-# Install global packages for development
-RUN bun install -g turbo drizzle-kit typescript @types/node
-
-# Install bun completions
-RUN bun completions > /etc/bash_completion.d/bun
-
 # Set up shell environment
-RUN echo "export PATH=$PATH:/home/$USERNAME/.bun/bin" >> /etc/profile
-RUN echo "source /etc/profile" >> /etc/bash.bashrc
-
-# Switch back to dialog for any ad-hoc use of apt-get
-ENV DEBIAN_FRONTEND=dialog
+RUN echo "export PATH=\$PATH:/home/$USERNAME/.bun/bin" >> /etc/profile
 
 WORKDIR /workspace
 
diff --git a/.devcontainer/README.md b/.devcontainer/README.md
index f57127c3c..10e684d3d 100644
--- a/.devcontainer/README.md
+++ b/.devcontainer/README.md
@@ -1,78 +1,75 @@
 # Sim Development Container
 
-This directory contains configuration files for Visual Studio Code Dev Containers / GitHub Codespaces. Dev containers provide a consistent, isolated development environment for this project.
+Development container configuration for VS Code Dev Containers and GitHub Codespaces.
 
-## Contents
-
-- `devcontainer.json` - The main configuration file that defines the development container settings
-- `Dockerfile` - Defines the container image and development environment
-- `docker-compose.yml` - Sets up the application and database containers
-- `post-create.sh` - Script that runs when the container is created
-- `.bashrc` - Custom shell configuration with helpful aliases
-
-## Usage
-
-### Prerequisites
+## Prerequisites
 
 - Visual Studio Code
-- Docker installation:
-  - Docker Desktop (Windows/macOS)
-  - Docker Engine (Linux)
-- VS Code Remote - Containers extension
+- Docker Desktop or Podman Desktop
+- VS Code Dev Containers extension
 
-### Getting Started
+## Getting Started
 
-1. Open this project in Visual Studio Code
-2. When prompted, click "Reopen in Container"
-   - Alternatively, press `F1` and select "Remote-Containers: Reopen in Container"
+1. Open this project in VS Code
+2. Click "Reopen in Container" when prompted (or press `F1` → "Dev Containers: Reopen in Container")
 3. Wait for the container to build and initialize
-4. The post-creation script will automatically:
+4. Start developing with `sim-start`
 
-   - Install dependencies
-   - Set up environment variables
-   - Run database migrations
-   - Configure helpful aliases
+The setup script will automatically install dependencies and run migrations.
 
-5. Start the application with `sim-start` (alias for `bun run dev`)
+## Development Commands
 
-### Development Commands
+### Running Services
 
-The development environment includes these helpful aliases:
+You have two options for running the development environment:
+
+**Option 1: Run everything together (recommended for most development)**
+```bash
+sim-start  # Runs both app and socket server using concurrently
+```
+
+**Option 2: Run services separately (useful for debugging individual services)**
+- In the **app** container terminal: `sim-app` (starts Next.js app on port 3000)
+- In the **realtime** container terminal: `sim-sockets` (starts socket server on port 3002)
+
+### Other Commands
 
-- `sim-start` - Start the development server
 - `sim-migrate` - Push schema changes to the database
 - `sim-generate` - Generate new migrations
-- `sim-rebuild` - Build and start the production version
-- `pgc` - Connect to the PostgreSQL database
-- `check-db` - List all databases
-
-### Using GitHub Codespaces
-
-This project is also configured for GitHub Codespaces. To use it:
-
-1. Go to the GitHub repository
-2. Click the "Code" button
-3. Select the "Codespaces" tab
-4. Click "Create codespace on main"
-
-This will start a new Codespace with the development environment already set up.
-
-## Customization
-
-You can customize the development environment by:
-
-- Modifying `devcontainer.json` to add VS Code extensions or settings
-- Updating the `Dockerfile` to install additional packages
-- Editing `docker-compose.yml` to add services or change configuration
-- Modifying `.bashrc` to add custom aliases or configurations
+- `build` - Build the application
+- `pgc` - Connect to PostgreSQL database
 
 ## Troubleshooting
 
-If you encounter issues:
+**Build errors**: Rebuild the container with `F1` → "Dev Containers: Rebuild Container"
 
-1. Rebuild the container: `F1` → "Remote-Containers: Rebuild Container"
-2. Check Docker logs for build errors
-3. Verify Docker Desktop is running
-4. Ensure all prerequisites are installed
+**Port conflicts**: Ensure ports 3000, 3002, and 5432 are available
 
-For more information, see the [VS Code Remote Development documentation](https://code.visualstudio.com/docs/remote/containers).
+**Container runtime issues**: Verify Docker Desktop or Podman Desktop is running
+
+## Technical Details
+
+Services:
+- **App container** (8GB memory limit) - Main Next.js application
+- **Realtime container** (4GB memory limit) - Socket.io server for real-time features
+- **Database** - PostgreSQL with pgvector extension
+- **Migrations** - Runs automatically on container creation
+
+You can develop with services running together or independently.
+
+### Personalization
+
+**Project commands** (`sim-start`, `sim-app`, etc.) are automatically available via `/workspace/.devcontainer/sim-commands.sh`.
+
+**Personal shell customization** (aliases, prompts, etc.) should use VS Code's dotfiles feature:
+1. Create a dotfiles repository (e.g., `github.com/youruser/dotfiles`)
+2. Add your `.bashrc`, `.zshrc`, or other configs
+3. Configure in VS Code Settings:
+   ```json
+   {
+     "dotfiles.repository": "youruser/dotfiles",
+     "dotfiles.installCommand": "install.sh"
+   }
+   ```
+
+This separates project-specific commands from personal preferences, following VS Code best practices.
diff --git a/.devcontainer/devcontainer.json b/.devcontainer/devcontainer.json
index e196efc8f..99bd1b3a4 100644
--- a/.devcontainer/devcontainer.json
+++ b/.devcontainer/devcontainer.json
@@ -13,13 +13,6 @@
           "source.fixAll.biome": "explicit",
           "source.organizeImports.biome": "explicit"
         },
-        "terminal.integrated.defaultProfile.linux": "bash",
-        "terminal.integrated.profiles.linux": {
-          "bash": {
-            "path": "/bin/bash",
-            "args": ["--login"]
-          }
-        },
         "terminal.integrated.shellIntegration.enabled": true
       },
       "extensions": [
@@ -36,18 +29,9 @@
     }
   },
 
-  "forwardPorts": [3000, 5432],
+  "forwardPorts": [3000, 3002, 5432],
 
   "postCreateCommand": "bash -c 'bash .devcontainer/post-create.sh || true'",
 
-  "postStartCommand": "bash -c 'if [ ! -f ~/.bashrc ] || ! grep -q \"sim-start\" ~/.bashrc; then cp .devcontainer/.bashrc ~/.bashrc; fi'",
-
-  "remoteUser": "bun",
-
-  "features": {
-    "ghcr.io/devcontainers/features/git:1": {},
-    "ghcr.io/prulloac/devcontainer-features/bun:1": {
-      "version": "latest"
-    }
-  }
+  "remoteUser": "bun"
 }
diff --git a/.devcontainer/docker-compose.yml b/.devcontainer/docker-compose.yml
index 790d1da0d..c107e30d3 100644
--- a/.devcontainer/docker-compose.yml
+++ b/.devcontainer/docker-compose.yml
@@ -7,52 +7,56 @@ services:
       - ..:/workspace:cached
       - bun-cache:/home/bun/.bun/cache:delegated
     command: sleep infinity
+    deploy:
+      resources:
+        limits:
+          memory: 8G
     environment:
       - NODE_ENV=development
       - DATABASE_URL=postgresql://postgres:postgres@db:5432/simstudio
       - BETTER_AUTH_URL=http://localhost:3000
       - NEXT_PUBLIC_APP_URL=http://localhost:3000
+      - BETTER_AUTH_SECRET=${BETTER_AUTH_SECRET:-your_auth_secret_here}
+      - ENCRYPTION_KEY=${ENCRYPTION_KEY:-your_encryption_key_here}
+      - COPILOT_API_KEY=${COPILOT_API_KEY}
+      - SIM_AGENT_API_URL=${SIM_AGENT_API_URL}
+      - OLLAMA_URL=${OLLAMA_URL:-http://localhost:11434}
+      - NEXT_PUBLIC_SOCKET_URL=${NEXT_PUBLIC_SOCKET_URL:-http://localhost:3002}
       - BUN_INSTALL_CACHE_DIR=/home/bun/.bun/cache
     depends_on:
       db:
         condition: service_healthy
-      realtime:
-        condition: service_healthy
       migrations:
         condition: service_completed_successfully
     ports:
       - "3000:3000"
       - "3001:3001"
     working_dir: /workspace
-    healthcheck:
-      test: ['CMD', 'wget', '--spider', '--quiet', 'http://127.0.0.1:3000']
-      interval: 90s
-      timeout: 5s
-      retries: 3
-      start_period: 10s
 
   realtime:
     build:
       context: ..
       dockerfile: .devcontainer/Dockerfile
+    volumes:
+      - ..:/workspace:cached
+      - bun-cache:/home/bun/.bun/cache:delegated
     command: sleep infinity
+    deploy:
+      resources:
+        limits:
+          memory: 4G
     environment:
       - NODE_ENV=development
       - DATABASE_URL=postgresql://postgres:postgres@db:5432/simstudio
       - BETTER_AUTH_URL=http://localhost:3000
       - NEXT_PUBLIC_APP_URL=http://localhost:3000
+      - BETTER_AUTH_SECRET=${BETTER_AUTH_SECRET:-your_auth_secret_here}
     depends_on:
       db:
         condition: service_healthy
     ports:
       - "3002:3002"
     working_dir: /workspace
-    healthcheck:
-      test: ['CMD', 'wget', '--spider', '--quiet', 'http://127.0.0.1:3002']
-      interval: 90s
-      timeout: 5s
-      retries: 3
-      start_period: 10s
 
   migrations:
     build:
diff --git a/.devcontainer/post-create.sh b/.devcontainer/post-create.sh
index ffff4395a..f77473f3a 100755
--- a/.devcontainer/post-create.sh
+++ b/.devcontainer/post-create.sh
@@ -8,11 +8,43 @@ echo "🔧 Setting up Sim development environment..."
 # Change to the workspace root directory
 cd /workspace
 
-# Setup .bashrc
-echo "📄 Setting up .bashrc with aliases..."
-cp /workspace/.devcontainer/.bashrc ~/.bashrc
-# Add to .profile to ensure .bashrc is sourced in non-interactive shells
-echo 'if [ -f ~/.bashrc ]; then . ~/.bashrc; fi' >> ~/.profile
+# Install global packages for development (done at runtime, not build time)
+echo "📦 Installing global development tools..."
+bun install -g turbo drizzle-kit typescript @types/node 2>/dev/null || {
+  echo "⚠️ Some global packages may already be installed, continuing..."
+}
+
+# Set up bun completions (with proper shell detection)
+echo "🔧 Setting up shell completions..."
+if [ -n "$SHELL" ] && [ -f "$SHELL" ]; then
+  SHELL=/bin/bash bun completions 2>/dev/null | sudo tee /etc/bash_completion.d/bun > /dev/null || {
+    echo "⚠️ Could not install bun completions, but continuing..."
+  }
+fi
+
+# Add project commands to shell profile
+echo "📄 Setting up project commands..."
+# Add sourcing of sim-commands.sh to user's shell config files if they exist
+for rcfile in ~/.bashrc ~/.zshrc; do
+  if [ -f "$rcfile" ]; then
+    # Check if already added
+    if ! grep -q "sim-commands.sh" "$rcfile"; then
+      echo "" >> "$rcfile"
+      echo "# Sim project commands" >> "$rcfile"
+      echo "if [ -f /workspace/.devcontainer/sim-commands.sh ]; then" >> "$rcfile"
+      echo "  source /workspace/.devcontainer/sim-commands.sh" >> "$rcfile"
+      echo "fi" >> "$rcfile"
+    fi
+  fi
+done
+
+# If no rc files exist yet, create a minimal one
+if [ ! -f ~/.bashrc ] && [ ! -f ~/.zshrc ]; then
+  echo "# Source Sim project commands" > ~/.bashrc
+  echo "if [ -f /workspace/.devcontainer/sim-commands.sh ]; then" >> ~/.bashrc
+  echo "  source /workspace/.devcontainer/sim-commands.sh" >> ~/.bashrc
+  echo "fi" >> ~/.bashrc
+fi
 
 # Clean and reinstall dependencies to ensure platform compatibility
 echo "📦 Cleaning and reinstalling dependencies..."
@@ -29,18 +61,12 @@ chmod 700 ~/.bun ~/.bun/cache
 
 # Install dependencies with platform-specific binaries
 echo "Installing dependencies with Bun..."
-bun install || {
-  echo "⚠️ bun install had issues but continuing setup..."
-}
+bun install
 
 # Check for native dependencies
 echo "Checking for native dependencies compatibility..."
-NATIVE_DEPS=$(grep '"trustedDependencies"' apps/sim/package.json || echo "")
-if [ ! -z "$NATIVE_DEPS" ]; then
-  echo "⚠️ Native dependencies detected. Ensuring compatibility with Bun..."
-  for pkg in $(echo $NATIVE_DEPS | grep -oP '"[^"]*"' | tr -d '"' | grep -v "trustedDependencies"); do
-    echo "Checking compatibility for $pkg..."
-  done
+if grep -q '"trustedDependencies"' apps/sim/package.json 2>/dev/null; then
+  echo "⚠️ Native dependencies detected. Bun will handle compatibility during install."
 fi
 
 # Set up environment variables if .env doesn't exist for the sim app
@@ -82,23 +108,6 @@ echo "Waiting for database to be ready..."
   fi
 ) || echo "⚠️ Database setup had issues but continuing..."
 
-# Add additional helpful aliases to .bashrc
-cat << EOF >> ~/.bashrc
-
-# Additional Sim Development Aliases
-alias migrate="cd /workspace/apps/sim && DATABASE_URL=postgresql://postgres:postgres@db:5432/simstudio bunx drizzle-kit push"
-alias generate="cd /workspace/apps/sim && bunx drizzle-kit generate"
-alias dev="cd /workspace && bun run dev"
-alias build="cd /workspace && bun run build"
-alias start="cd /workspace && bun run dev"
-alias lint="cd /workspace/apps/sim && bun run lint"
-alias test="cd /workspace && bun run test"
-alias bun-update="cd /workspace && bun update"
-EOF
-
-# Source the .bashrc to make aliases available immediately
-. ~/.bashrc
-
 # Clear the welcome message flag to ensure it shows after setup
 unset SIM_WELCOME_SHOWN
 
diff --git a/.devcontainer/sim-commands.sh b/.devcontainer/sim-commands.sh
new file mode 100755
index 000000000..640feb2f9
--- /dev/null
+++ b/.devcontainer/sim-commands.sh
@@ -0,0 +1,42 @@
+#!/bin/bash
+# Sim Project Commands
+# Source this file to add project-specific commands to your shell
+# Add to your ~/.bashrc or ~/.zshrc: source /workspace/.devcontainer/sim-commands.sh
+
+# Project-specific aliases for Sim development
+alias sim-start="cd /workspace && bun run dev:full"
+alias sim-app="cd /workspace && bun run dev"
+alias sim-sockets="cd /workspace && bun run dev:sockets"
+alias sim-migrate="cd /workspace/apps/sim && bunx drizzle-kit push"
+alias sim-generate="cd /workspace/apps/sim && bunx drizzle-kit generate"
+alias sim-rebuild="cd /workspace && bun run build && bun run start"
+alias docs-dev="cd /workspace/apps/docs && bun run dev"
+
+# Database connection helpers
+alias pgc="PGPASSWORD=postgres psql -h db -U postgres -d simstudio"
+alias check-db="PGPASSWORD=postgres psql -h db -U postgres -c '\l'"
+
+# Default to workspace directory
+cd /workspace 2>/dev/null || true
+
+# Welcome message - show once per session
+if [ -z "$SIM_WELCOME_SHOWN" ]; then
+  export SIM_WELCOME_SHOWN=1
+
+  echo ""
+  echo "━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━"
+  echo "🚀 Sim Development Environment"
+  echo ""
+  echo "Project commands:"
+  echo "  sim-start      - Start app + socket server"
+  echo "  sim-app        - Start only main app"
+  echo "  sim-sockets    - Start only socket server"
+  echo "  sim-migrate    - Push schema changes"
+  echo "  sim-generate   - Generate migrations"
+  echo ""
+  echo "Database:"
+  echo "  pgc            - Connect to PostgreSQL"
+  echo "  check-db       - List databases"
+  echo "━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━━"
+  echo ""
+fi