First, I hope that you stay great. You've got compassion for the other developer, plus a good sense of what's wrong in an engineering culture. It would be upsetting for our industry to lose that to burnout or worse.
In your CTO's defense, assuming we define microservices in roughly the same way, I think a single developer should be able to handle 10 microservices. If a developer couldn't, I'd want to look at contributing factors like death by agile, technical debt and a shitty stack. If none of those are the case, is the developer burned out? Or does she have the skill/demeanour to even do the work in that company?
And sadly, you likely don't have time to ship the project and lobby for a major organizational change. I think you either need to be that manager in the middle (you're definitely capable, Manager), or alternately, how is your Go???
Good luck - I'll be thinking about you.