Got two URs related to this, and I confirmed that Waze really want to route around this strip sometimes:
It needlessly takes the first right, and immediately enters the service road. A few blocks south, it takes a left, and has to pass through the intersection with the main road it just left. Happens that the left is illegal, so I fixed the missing turn restriction, which would have prevented it. I Until the tiles are updated, you can still see the odd routing.
Then this one a few block further north. Two hours ago, it was similarly leaving the main road for the service lane, then returning to the main road one block further on. Now it is not doing that, no idea what changed in a couple of hours, though it could be a time of day road speed thing. Maybe these segments need road speed data reset?