The hot reload doesn’t need to be fancy. And in today’s ecosystem it is table stakes to have a good Developer Experience which includes a tight rebuild loop during local development.
All that is needed is for the server to completely restart when a change is detected in the modules directory (AppInstance pattern.) And an appropriate way to opt-in to the functionality in development environments. Launch flag, config option, etc.
Currently developers have to implement this functionality themselves at the wrong layer. Either at the OS layer by building a watcher system on top of the nakama base image. Or in their orchestration layer via docker compose watch, --build <svc>, etc.
This is time spent implementing missing functionality and not building a game.