Add local server state machine subprocess tests - #521

Bugbot Analysis Progress (4m 37s elapsed)

✅ Gathered PR context (3s)
✅ Completed bug detection (4m 33s)
✅ Posted analysis results (1s)

Final Result: Bugbot completed review - no issues found! ✅

Request ID: serverGenReqId_ddf6ba7a-67f9-483e-a634-6d897a0d3b1b