App Hosting Emulator and latest guidelines

What’s the correct way to run the nextjs-end application locally using Firebase Auth and Firebase App Hosting emulators?

I noticed that the firebase.json is configured to use functions and hosting, but according to Firebase’s latest documentation, we should be using App Hosting instead. Is there a reason for this setup?

It would be really helpful if the example repositories included a full, up-to-date implementation for running locally, aligned with the latest Firebase guidance. I haven’t found clear documentation on this, and when I try using the aapphosting emulator with initializeApp, I get errors about missing config values, don't know if it is my configuration or if apphosting emulator is not fully prepared yet.

Is there any plan to update the examples so they can be run locally without additional setup or guesswork?