Angular 16 Hydration - API calls are happening in Server Side and Client Side

Question

In my Angular 16.2.0 ssr project with Nest.js, the API calls are happening on the server side and client side as well, though the provideClientHydration is provided. I can see that the console msg say hydrated.

Angular hydrated 62 component(s) and 889 node(s), 0 component(s) were skipped.

And also i can see the API responses have been added to the dom,

Any pointers would be highly appreciated. Thank you.