The development team at Coder uses a unique approach for their development environments. They share one giant bare metal machine, which is more cost-effective than maintaining separate Kubernetes clusters in different regions. This setup allows developers to create workspaces that can burst and leverage all resources when needed. The team uses Coder v2, an open-source remote development platform, which offers flexibility and ease of use for both developers and administrators. They also have a machine set up for their Australian coworkers, with no added latency due to Coder's networking support for peer-to-peer connections.