I personally set up a development environment as a base of my WordPress Development, where I've dummy data and some other debugging plugins. I then create my own plugin directory and do
git init in it. During plugin development, I set up the Developer plugin to Plugin for a self-hosted WordPress installation. It helps me to understand my plugin's performance with other plugins and themes.
Then I add my test data specific to that plugin, develop it, test it, finalize it -
For Git remote, I use Bitbucket and Gitlab for private plugins, and Github for public plugins.
When the plugin is ready to deploy, I then test it in other development environments similar to this, with other engines (if possible). Finally release the version
git tag -a v1.0.0.
This setup helped me to use a single/duo Development environment for all types of development. And other environments for testing.