Virtual Service retry with the mesh gateway

If the virtual service is used with the mesh gateway then retryRemoteLocalities and attempts are not working. Is it by design or I am missing something?

apiVersion: networking.istio.io/v1alpha3
kind: VirtualService
metadata:
  name: myapp
spec:
  hosts:
    - myapp.default.svc.cluster.local

  gateways:
    - mesh

  http:
    - name: myapp
      route:
        - destination:
            host: myapp
            port:
              number: 8000

      retries:
        attempts: 5
        retryOn: 500,502,retriable-status-codes,connect-failure,reset,gateway-error,refused-stream
        retryRemoteLocalities: true

Istio 1.14.1 Kubernetes: 1.24.3