There are pros and cons to both of these and many larger projects will use a hybrid approach with a component team establishing foundational capabilities which are then consumed by multiple feature teams.
While feature teams will provide a customer-centric approach, unless there are sufficient skill sets to be dedicated to each team and unless there are common standards or libraries to ensure consistency of development, you could end with multitasking or quality concerns.
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Pench BattaEnterprise Lean Agile DevOps Coach /SAFe Program Consultant (SPC6)| Capgemini, Inc.Bentonville, Ar, United States