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This seems to side step governance of the repository pulling said module version

You need governance of the client choosing a specific version of the service too.

Or, in other words, you can't have teams cooperating without governance.

If you allow at most 2 versions and expect team introducing change to rewrite all code...

At small size of code, tooling for that may be off-the-shelf for monolith.

Are there any rewrite told that work cross repos though?