I've worked on a project with similar setup: Gradle packages for API, domain and infra and it was one of the nicest developer experiences I've had for backend. Better than classic monolith, in which people sometimes put stuff wherever without respecting the boundaries or microservices, which were pain to develop when multi-service communication was involved.

The cherry on top was when one of my junior collegues told me that he was struggling, since the project did not let him use dependency, that did not make sense.