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Puvvada VeerendraPuvvada Veerendra 

facing the following error while trying to setup local development server Error: yarn add lwc-dev-server@latest --non-interactive

VinayVinay (Salesforce Developers) 
Can you check below reference which has similar issues.

https://www.sfdcstop.com/2021/07/error-while-installing-lwc-local-server.html
https://github.com/forcedotcom/lwc-dev-server-feedback/issues/3

Please mark as Best Answer if above information was helpful.

Thanks,
Saurabh Tripathi 18Saurabh Tripathi 18
Hello,
Below steps might fix the issue, I encountered this error because my sfdx was not up to date. Follow below step - 

1. Open project directory and then open teriminal in VS Code or in command prompt.
2. In order to update sfdx use command - 'sfdx update'.
3. After the above command runs successfully, try installing dev server agai. Alternatively use command - 'sfdx plugins:install @salesforce/lwc-dev-server'.
Thanks,
Saurabh