LocalStack health check timeout causes false unhealthy status

LocalStack's default Docker health check timeout of 5 seconds is insufficient for the health check endpoint to respond, causing Docker to mark the container as unhealthy (ExitCode -1) in approximately 10% of container starts. All services report 'available' in the health check output, but the response time exceeds the timeout threshold, creating false negative health status that blocks dependent services.

Override the default health check in docker-compose.yml with extended timeouts: set timeout to 10s (doubled from default 5s), set start_period to 15s to allow initialization time, set interval to 10s between checks, and configure 3 retries before marking unhealthy. Use the command `.venv/bin/localstack status services --format=json` as the test command.