That's QM in a nutshell. Of course, it's not completely clear why two different regimes are needed and when should one or the other be used. But as John Bell wrote in his "Against 'measurement'" article (
https://www.tau.ac.il/~quantum/Vaidman/IQM/BellAM.pdf): "ORDINARY QUANTUM MECHANICS (as far as I know) IS JUST FINE FOR ALL PRACTICAL PURPOSES".
Quoting Everett's dissertation (http://www.weylmann.com/relative_state.pdf):
We take the conventional or "external observation" formulation of quantum mechanics to be essentially the following [1]: A physical system is completely described by a state function ψ, which is an element of a Hilbert space, and which furthermore gives information only to the extent of specifying the probabilities of the results of various observations which can be made on the system by external observers. There are two fundamentally different ways in which the state function can change:
Process 1: The discontinuous change brought about by the observation of a quantity with eigenstates φ_1, φ_2, ... , in which the state ψ will be changed to the state φ_j, with probability |(ψ,φ_j)|^2.
Process 2: The continuous, deterministic change of state of an isolated system with time according to a wave equation dψ/dt = Aψ, where A is a linear operator.
This formulation describes a wealth of experience. No experimental evidence is known which contradicts it.
[1] We use the terminology and notation of J. von Neumann, Mathematical Foundations of Quantum Mechanics, translated by R.T.Beyer (Princeton University Press, Princeton, I955).