[feature]: Improve setup.sh script with better error handling and user feedback

Is there an existing issue for this?

• I have searched the existing issues

Summary

The current setup.sh script runs silently without providing any user feedback during the environment setup process. This makes it difficult to identify problems when they occur, especially for new contributors.

Why should this be worked on?

When running the current setup script:

• No output is provided to indicate success or failure
• It's challenging to diagnose issues when they occur
• New contributors might be confused about whether the setup completed successfully
• There's no guidance about next steps after setup