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Upgrade PostgreSQL from EOL version 11.1 to a supported release #791

Description

@snehanair-486

Problem

The project currently pins postgres:11.1 in docker-compose.dev.yaml. PostgreSQL 11 reached end of life in November 2023 and no longer receives security patches. Running an EOL database in any environment — including development — means known CVEs go unaddressed and the setup diverges further from what a production deployment would use.

Proposed change

Bump the image to postgres:16 (or postgres:17), which are both actively maintained. The migration should also pin to a minor version tag (e.g. postgres:16.3) for reproducibility rather than using a floating major-version tag.

Steps to verify

  1. Update the image tag in docker-compose.dev.yaml
  2. Run make local and confirm the API engine connects successfully
  3. Run existing tests with make check-api and confirm no regressions

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