chore: remove completed PRD, rename setup doc, drop response_format tests

- Remove docs/01_ollama.prd.md (implementation complete)
- Rename local-dev-setup.md -> standalone-local-setup.md
- Remove TestResponseFormat class from test_llm_retry.py

server/tests/test_llm_retry.py

@@ -286,92 +286,6 @@ class TestStructuredOutputWorkflow:
             assert mock_settings.llm.acomplete.call_count == 2
 
 
-class TestResponseFormat:
-    """Test that response_format with JSON schema is passed to acomplete"""
-
-    @pytest.mark.asyncio
-    async def test_acomplete_called_with_response_format(self):
-        """acomplete() should receive response_format containing Pydantic JSON schema"""
-        workflow = StructuredOutputWorkflow(
-            output_cls=TestResponse,
-            max_retries=3,
-            timeout=30,
-        )
-
-        with (
-            patch("reflector.llm.TreeSummarize") as mock_summarize,
-            patch("reflector.llm.Settings") as mock_settings,
-        ):
-            mock_summarizer = MagicMock()
-            mock_summarize.return_value = mock_summarizer
-            mock_summarizer.aget_response = AsyncMock(return_value="Some analysis")
-
-            mock_settings.llm.acomplete = AsyncMock(
-                return_value=make_completion_response(
-                    '{"title": "Test", "summary": "Summary", "confidence": 0.95}'
-                )
-            )
-
-            result = await workflow.run(
-                prompt="Extract data",
-                texts=["Some text"],
-                tone_name=None,
-            )
-
-            assert "success" in result
-
-            # Verify response_format was passed
-            call_kwargs = mock_settings.llm.acomplete.call_args
-            assert "response_format" in call_kwargs.kwargs
-            rf = call_kwargs.kwargs["response_format"]
-            assert rf["type"] == "json_schema"
-            assert rf["json_schema"]["name"] == "TestResponse"
-            assert rf["json_schema"]["schema"] == TestResponse.model_json_schema()
-
-    @pytest.mark.asyncio
-    async def test_response_format_present_on_retry(self):
-        """response_format should be passed on retry attempts too"""
-        workflow = StructuredOutputWorkflow(
-            output_cls=TestResponse,
-            max_retries=3,
-            timeout=30,
-        )
-
-        with (
-            patch("reflector.llm.TreeSummarize") as mock_summarize,
-            patch("reflector.llm.Settings") as mock_settings,
-        ):
-            mock_summarizer = MagicMock()
-            mock_summarize.return_value = mock_summarizer
-            mock_summarizer.aget_response = AsyncMock(return_value="Some analysis")
-
-            call_count = {"count": 0}
-
-            async def acomplete_handler(*args, **kwargs):
-                call_count["count"] += 1
-                if call_count["count"] == 1:
-                    return make_completion_response('{"title": "Only title"}')
-                return make_completion_response(
-                    '{"title": "Test", "summary": "Summary", "confidence": 0.9}'
-                )
-
-            mock_settings.llm.acomplete = AsyncMock(side_effect=acomplete_handler)
-
-            result = await workflow.run(
-                prompt="Extract data",
-                texts=["Some text"],
-                tone_name=None,
-            )
-
-            assert "success" in result
-            assert call_count["count"] == 2
-
-            # Both calls should have response_format
-            for call in mock_settings.llm.acomplete.call_args_list:
-                assert "response_format" in call.kwargs
-                assert call.kwargs["response_format"]["type"] == "json_schema"
-
-
 class TestNetworkErrorRetries:
     """Test that network error retries are handled by OpenAILike, not Workflow"""