One major usage of services meshes that I’ve come across is for the transparent L7 ALB. gRPC, which is now very common, uses long-running connections to multiplex messages. This breaks load-balancing because new gRPC calls, within a single connection, will not be distributed automatically to new endpoints. There is the option of DNS polling, but DNS caching can interfere. So, the L7 service mesh proxy is used to load balance the gRPC calls without modification of services.
https://learn.microsoft.com/en-us/aspnet/core/grpc/loadbalan...