Personally I lean towards building a monolith first, then breaking out features into separate services if you need it. But I've worked on teams that advocated for microservices needlessly, and it was 100% cargo cult behavior: "Netflix does it, so we should too."
Another anecdote: my current company, a startup, could've launched its product a year earlier than it did, but our engineering lead insisted on pre-engineering a Rube Goldberg machine of a microservices backend before we even had any prospective customers. Took months of engineering time and headaches to grok all of it, when in reality, one monolith and a basic database could've done the job for years before we'd ever have to scale past that.
But microservices architecture looks great on a resume, so /shrug
I've seen this too, and in fact I got laid off because I pushed back against this silliness for what should have been a simple lift and shift.