No, this does indeed match reality. At least for those who work with microservices. This is microservices 101. It's baffling how this is even being argued.
We have industry behemoths building their whole development experience around this fact. Look at Microsoft. They even went to the extents of supporting Connected Services in Visual Studio 2022. Why on earth do you believe one of the most basic traits of backend development is unreal?
> I work at ~50 ish employee company and we have layers of dependencies between at least 6 or 7 various microservices.
Irrelevant. Each service has dependencies and consumers. When you need to run an instance of one of those services locally, you point it to it's dependencies and you unplug it from it's consumers. Done. This is not rocket science.