I would say that if the features and design are well set up, then having this separation can work very well, especially if you can treat your API like one that is depended upon by others.
However, for more exploratory development, I find the separation between the two can lead to some increase in maintenance work and context switching. Granted, this view comes from experience working with multiple microservices that aren't maintained quite like public apis. So sometimes delivery of features can feel like you're hopping through a few more hoops than most would prefer.
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