It's how Amazon's stuff used to work (though not using Stow) back several years ago. No idea if they've migrated from that approach to containers, or similar, yet.
Every application you deployed would have the necessary components deployed (or re-used if you had something else that already used it), and then build the application space from symlinks to those parts. Worked really well.
It's how gobolinux works too, for example.
It's been a while, so I'm sure to get things wrong, but you basically had different package groups you could set up. So a service would have its group that it could update, test, and deploy with at once.
But like if I produced a package, and another team depended on it, there was no guarantee that the group I ran in CI had versions in common with the group that they deployed.
I also remember some weirdness just within one package, like maybe your PR build was based on your local group setup and not anything "official".
The coolest thing about it is that you could make a PR against multiple repos at the same time, even if one depended on the other. Like you could add a function to a library in one repo and call it from another repo in one PR.
(FWIW this is a sincere question; given the number of these things I touch, I would very much like to know if there are problems I need to know about and/or better alternatives)