Using Azure Service Bus in local
The problem should probably be solved by abstracting the service bus implementation so that it can be swapped for something that you actually can run locally (or in memory). I would suggest not to re-invent that wheel though and choose a library like Masstransit https://masstransit-project.com.
Azure Service Bus is a broker with competing consumers. Having multiple developers debugging using the same namespace will be be tough (message lock duration expired and another developer that happened to be debugging got that message). I would suggest to look into a namespace per developer. With MSDN license you're given enough Azure credit to have each developer work in a "sandboxed" namespace. As to how to get it working, you can read from a configuration file, environment variable, etc.
On the ASB for Windows Server - currently it's on version 1.1 where Azure SB is on 3+. Hosted version will be always ahead of the on-premises. Something to consider.
We ended up using a different topic name for each developer while debugging which is working pretty good.
Unfortunately, there is no Azure SB local emulator. That was asked before, and you can try to use Service Bus for Windows Server but it is slightly behind the cloud service in terms of features support/functionality, etc. Still, it supports Azure SDK, for example. MSDN link for SB for WS.