Splitting off a few larger parts because they are self contained, have their own Ops characteristics and might be usable by other projects on their own, vs creating a service for every single entity in your domain modal (or whatever), that's quite a difference.
We have an auth service, a database service for raster geo data, a generic task runner. Those are services. They all have their own pretty unique architecture and stand on their own, they are used by but are separate from the project that they were made for.
Different services for customers, for orders, for invoices, for items in the shop, for items on an order, for promotions, that's microservices. They all look very similar and belong to the application.