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Other examples might include environmental work or working with kids. It could all be not only team building but helping people develop an appreciation for their society and help work together to keep it running. It could help people see different perspectives by working together with people they wouldn’t normally interact with. For example, IF you spend a summer cleaning litter from local parks, maybe you’ll be less likely to litter
Peace Corp and WPA were both successes, but a portfolio of similar service opportunities is more likely to include something for everyone
Nobody is saying that service is bad.
But having untrained kids straight out of high school interacting with small children? That is a great path to abuse. And is why basically any summer camp will watch the new staff like a hawk and only give them any degree of autonomy in year two or even four of volunteering.
And the idea of "make everyone work retail to learn to not be an asshole to retail workers" is fundamentally flawed. It is not like working retail or picking up trash is a romanticized job in media. If you somehow don't know it is a shit job then you already lack any empathy and doing a shit job for a year isn't going to help with that.
And, again, you are missing a key point: People join the Peace Corps as volunteers. Not as a mandatory year of service where the options are to dig ditches or join the military. THAT is the key here. What is being proposed is a mandatory year of service and I keep pointing out how that is of very limited use to anyone and is mostly just "physical labor".