1. At least CC supports multiple folders in a workspace, so that’s not really a limitation.
2. If you find you are making changes across multiple services, then that is a good indication that you might not have the correct abstraction on the service boundary. I agree that in this case a monolith seems like a better fit.
For the second, yeah, but IME everything starts out well-factored, but almost universally evolves into spaghetti over time. The main advantage monoliths have is that they're safer to refactor across boundaries. With distributed services, there are a lot more backward-compatibility guarantees and concerns you have to work through, and it's harder to set up tests that exercise everything e2e across those boundaries. Not impossible, but hard enough that it usually requires a dedicated initiative.
Anyway, random thoughts.
The way I see feature development in the future is, PM creates a dev cluster (also much easier with a monolith), has AI implement a bunch of features to spec, AI provides some feedback and gets input on anywhere it might conflict with existing functionality, whether eventual consistency is okay, which pieces are performance criticial, etc., and provides the implementation, a bunch of tests for review, and errata about where to find observability data, design decisions considered and chosen, etc. PM does some manual testing across various personas and products (along with PMs from those teams), has AI add feature flags, launches. The feature flag rollout ends up being the long-pole, since generally the product team needs to monitor usage data for some time before increasing the rollout percentage.
So I see that kind of workflow as being a lot easier in a monolithic service. Granted, that's a few years down the road though, before we have AI reliable enough to do that kind of work.