I think you are missing the intermediate step of libraries.
1. monolith
2. libraries
3. services
If you skip step 2, there is a high probability that the services you end up with are going to be just as disorganized as the monolith which is causing grief.
yup, agreed. I generally would consider your step2 as part of the lifecycle of a well architected monolith, but calling it out as a separate step is certainly clearer, and does reflect more of what I have seen "work well" in the real world too.
1. monolith 2. libraries 3. services
If you skip step 2, there is a high probability that the services you end up with are going to be just as disorganized as the monolith which is causing grief.