Update: Couldn’t find a solution to this. Just like most things in the cardano dev sphere the offical docs are trash and stuff compiled together by the community ends up making most sense. For anyone reading this in the future, do take a look at
https://cardano-community.github.io/guild-operators/Build/dbsync/
the folks there explain things really well, with good examples. I managed to get everything up and running by following the above link.
Seriously the Cardano foundation needs to focus more on the dev experience, by making sure devs have access to good documentation.