[release-1.3] Set destination_service to destination.service.host

[istio-testing]

This is an automated cherry-pick of #17235

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[rlenglet]

@bianpengyuan please consider adding an item into the 1.3.1 release note draft.

[googlebot]

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[rlenglet]

/test racetest

[rlenglet]

/test racetest

[nrjpoddar]

Thanks @bianpengyuan for updating the release notes for 1.3.1. Cheers!

Where is the WIP doc for 1.2.x release notes?

[bianpengyuan]

@nrjpoddar I think there is no wip release doc for 1.2.x and @fpesce generates the release note at release time.