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Yes, in the scenario where an Istio AuthorizationPolicy's "to" rule results in a 503 error due to matching no criteria, it means that the policy is restricting access to a service endpoint but is not matching any criteria specified in the policy.
For example, let's say there is an AuthorizationPolicy that restricts access to a service endpoint for requests coming from a specific source namespace or with a specific user identity. When a request is sent to the service endpoint from another source namespace or user identity, the policy's "to" rule cannot match any criteria and, therefore, denies the request, resulting in a 503 error.
To avoid this scenario, it's essential to define appropriate "to" rules in the AuthorizationPolicy that match the criteria for the service endpoint's intended audience, ensuring that only authorized requests are allowed and preventing unnecessary access restrictions.