Should development tools be installed on the host or in an environment standardized at project level?
At many companies (eg banks) the provenance of the code that gets out to live needs to be known and traceable. This is typically done by having a controlled build farm that builds from source. Release builds upload the binary artefacts to a location where they cannot be overwritten. The artefacts are then deployed by any number of mechanisms that are traceable to an individual and an approved change request. This model is generally just referred to as a ”pipeline”.  

Under such a model a ”dev host” or ”dev environment” can have anything and everything that developers want on it. It can use newer versions of software than are available in production. It's entirely down to the context whether that is going to cause problems with code failing testing in a live-like environment. It's typical to put release build code through at least one test environment before pushing it to live. That environment is kept as similar to the live environment as possible.