docs: Restructure documentation with Bookstack-compatible hierarchy

- Organized docs into numbered shelf/book/chapter/page structure
- Created comprehensive README.md with project overview
- Added Getting Started book (quick start, installation, configuration)
- Added Development book (workflow, testing, type sharing)
- Added Architecture book (design principles, PDA-friendly patterns)
- Added API Reference book (conventions, authentication)
- Moved TYPE-SHARING.md to proper location
- Updated all cross-references in main README
- Created docs/README.md as master index
- Removed old QA automation reports
- Removed deprecated SETUP.md (content split into new structure)

Documentation structure follows Bookstack best practices:
- Numbered books: 1-getting-started, 2-development, 3-architecture, 4-api
- Numbered chapters and pages for ordering
- Clear hierarchy and navigation
- Cross-referenced throughout

Complete documentation available at: docs/README.md

Co-Authored-By: Claude Sonnet 4.5 <noreply@anthropic.com>

docs/1-getting-started/2-installation/2-local-setup.md

@@ -0,0 +1,259 @@
+# Local Setup
+
+Native installation for active development with hot reload and debugging.
+
+## Prerequisites
+
+Complete [Prerequisites](1-prerequisites.md) first.
+
+## Step 1: Clone Repository
+
+```bash
+git clone https://git.mosaicstack.dev/mosaic/stack mosaic-stack
+cd mosaic-stack
+```
+
+## Step 2: Install Dependencies
+
+```bash
+pnpm install
+```
+
+This installs dependencies for:
+- Root workspace
+- `apps/api` (NestJS backend)
+- `apps/web` (Next.js frontend - when implemented)
+- `packages/shared` (Shared types and utilities)
+
+## Step 3: Configure Environment
+
+```bash
+# Copy environment template
+cp .env.example .env
+
+# Edit configuration
+nano .env  # or use your preferred editor
+```
+
+**Minimum required configuration:**
+
+```bash
+# Database
+DATABASE_URL=postgresql://mosaic:mosaic@localhost:5432/mosaic
+
+# JWT Session
+JWT_SECRET=$(openssl rand -base64 32)
+JWT_EXPIRATION=24h
+
+# Application
+NEXT_PUBLIC_APP_URL=http://localhost:3000
+```
+
+See [Configuration → Environment](../3-configuration/1-environment.md) for complete reference.
+
+## Step 4: Setup PostgreSQL Database
+
+### Create Database and User
+
+```bash
+sudo -u postgres psql <<EOF
+CREATE USER mosaic WITH PASSWORD 'mosaic';
+CREATE DATABASE mosaic OWNER mosaic;
+\c mosaic
+CREATE EXTENSION IF NOT EXISTS vector;
+CREATE EXTENSION IF NOT EXISTS "uuid-ossp";
+GRANT ALL PRIVILEGES ON DATABASE mosaic TO mosaic;
+EOF
+```
+
+### Or Use Docker PostgreSQL
+
+```bash
+# Start only PostgreSQL
+docker compose up -d postgres
+
+# Wait for it to be ready
+sleep 5
+```
+
+## Step 5: Run Database Migrations
+
+```bash
+# Generate Prisma client
+pnpm prisma:generate
+
+# Run migrations
+cd apps/api
+pnpm prisma migrate deploy
+
+# Seed development data (optional)
+pnpm prisma:seed
+
+# Return to project root
+cd ../..
+```
+
+## Step 6: Start Development Servers
+
+```bash
+# Start all services
+pnpm dev
+
+# This starts:
+# - API on http://localhost:3001
+# - Web on http://localhost:3000 (when implemented)
+```
+
+**Or start individually:**
+
+```bash
+# API only
+pnpm dev:api
+
+# Web only (when implemented)
+pnpm dev:web
+```
+
+## Step 7: Verify Installation
+
+### Check API Health
+
+```bash
+curl http://localhost:3001/health
+```
+
+**Expected response:**
+```json
+{
+  "status": "ok",
+  "timestamp": "2026-01-28T...",
+  "uptime": 1234
+}
+```
+
+### Run Tests
+
+```bash
+pnpm test
+```
+
+**Expected output:**
+```
+Test Files  5 passed (5)
+     Tests  26 passed (26)
+```
+
+### Open Prisma Studio
+
+```bash
+cd apps/api
+pnpm prisma:studio
+
+# Opens at http://localhost:5555
+```
+
+## Development Workflow
+
+### File Watching
+
+The development servers automatically reload when you make changes:
+
+```bash
+# API watches src/**/*.ts
+pnpm dev:api
+
+# Changes trigger automatic restart
+```
+
+### Running Specific Tests
+
+```bash
+# All tests
+pnpm test
+
+# Watch mode (re-runs on file changes)
+pnpm test:watch
+
+# Specific test file
+pnpm test apps/api/src/auth/auth.service.spec.ts
+
+# Coverage report
+pnpm test:coverage
+```
+
+### Database Management
+
+```bash
+cd apps/api
+
+# Open Prisma Studio GUI
+pnpm prisma:studio
+
+# Create migration after schema changes
+pnpm prisma migrate dev --name your_migration_name
+
+# Reset database (WARNING: deletes data)
+pnpm prisma migrate reset
+```
+
+## Troubleshooting
+
+### Port Already in Use
+
+```bash
+# Find process using port
+lsof -i :3001
+
+# Kill process
+kill -9 <PID>
+
+# Or use different port
+PORT=3002 pnpm dev:api
+```
+
+### PostgreSQL Connection Failed
+
+```bash
+# Check if PostgreSQL is running
+sudo systemctl status postgresql
+
+# Test connection
+psql -U mosaic -d mosaic -h localhost -W
+# Password: mosaic
+
+# Check DATABASE_URL in .env
+cat .env | grep DATABASE_URL
+```
+
+### Prisma Client Not Generated
+
+```bash
+cd apps/api
+pnpm prisma:generate
+
+# If still failing, clean and reinstall
+rm -rf node_modules
+cd ../..
+pnpm install
+pnpm prisma:generate
+```
+
+### Build Errors
+
+```bash
+# Clean build cache
+rm -rf apps/*/dist packages/*/dist
+
+# Rebuild
+pnpm build
+
+# Type check
+pnpm typecheck
+```
+
+## Next Steps
+
+1. **Configure Authentication** — [Authentik Setup](../3-configuration/2-authentik.md)
+2. **Learn the Workflow** — [Development → Workflow](../../2-development/1-workflow/1-branching.md)
+3. **Explore the Database** — [Development → Database](../../2-development/2-database/1-schema.md)
+4. **Review API Docs** — [API → Conventions](../../4-api/1-conventions/1-endpoints.md)