Well yes, but when I use a debugger for example that would require me to first debug application 1, then 2, then 3 in order to fully go through the cycle. This seems quite... time consuming.
But you would have to create a development environment running the complete micro-services environment on a single machine. Or setup distributed/cloud logging & debug against production. Which is generally easier to do if you use a monolith. Admittedly tools like docker compose and vagrant can help with this.