1. Deployment. Being able to deploy code rapidly and independently is lost when everything ships as a monolith.
2. Isolation. My process is GC-spiraling. Which team's code change is responsible for it? Since the process is shared across teams, a perf bug from one team now impacts many teams.
3. Operational complexity. People working on the system have to deal with the the fact that many teams' modules are running in the same service. Debugging and troubleshooting gets harder. Logging and telemetry also tends to get more complicated.
4. Dependency coupling. Everyone has to use the exact same versions of everything and everyone has to upgrade in lockstep. You can work around this with module systems that allow dependency isolation, but IMO this tends to lead to its own complexity issues that make it not worthwhile.
5. Module API boundaries. In my experience, developers have an easier time handling service APIs than library APIs. The API surface area is smaller, and it's more obvious that you need to handle backwards compatibility and how. There is also less opportunity to "cheat", or break encapsulation, with service boundaries compared to library boundaries.
In practice, for dividing up code, libraries and modules are the less popular solution for server-side programming compared to services for good reasons. The downsides are not worth the upsides in most cases!