Someone needs to think about the boundaries between different parts of a system. If those boundaries are defined by functions, classes, packages or services, it doesn't matter that much. Yes, it is always a pain.
Shipping the entire forest of modules in a single repo seems like a good compromise. It stops being a good compromise when you start creating a complicated network of soft dependencies between those modules. And when you have everything in a single repository, it's hard NOT to do that.
By the way, there's nothing wrong with monoliths. They're just better if you design them as such. There's nothing wrong with microservices as well. It shouldn't be a surprise though that neither of them are actually silver bullets.
I understand why these solutions were created. I see it as an ephemeral thing. Once someone figures out the tooling and practices to automate all of that painful management locally, developers will always prefer that. Then when it's fast and easy, we'll break it once again (like we did with classes, packages, containers, etc).