The latter means a specific (sub)genre
The specific subgenre you’re referring to was essentially defined by Dragon Quest 1, which is an almost perfect (in my opinion, of course) combination of Ultima-style exploration and Wizardry-style combat (another game similarly a combo of Ultima and Wizardry is Wasteland, which I feel the same level of admiration for). Basically every RPG in Japan has something in common with Dragon Quest, at some level or another. In other words, SMT and Elminage belong to the same genre as DQ.
They are just trying to cope to not get caught liking a filthy JRPG from that problematic island in the pacific with an homogenous population. Can you imagine liking a sub-genre without constant woke talking points? SMT alone perfected the Wizardry 4 formula.
Are those "they" the same ones that the main character of John Carpenter's In the mouth of madness mentions? When he is in a cell in an asylum? You are disturbed if you think "woke" is wanted on the Dex. Even the few woke folks we have don't seem the actually like it just don't mind. As to all the rest, have you even read any threads here about games made in the last decade. Especially the Pathfinders.
As to classifications. Chrono Trigger, mentioned here, imo had bad gameplay but the one original part was the story, namely time travel which is very rarely portrayed in crpgs. Maybe it is a more popular trope in jrpgs, I wouldn't know. Same with FF6, another one of the few jrpgs i played. And again bad gameplay but some interesting story and settings elements. Otoh, Elminages, i can't even remember any "story" despite playing those a few years ago. The gameplay however was engaging and very different.
Compare. A group of characters rolled at the start, classes that can be changed, without any backgrounds. Character building s important. Exploring and navigating maze-like dungeons. Fighting in 1st person as a "blob", with only basic story.
VS.
Several premade characters with (deep and engaging and obligatory tragic, lol) stories and specific "unique powers". Stories that along the main story make the one the main appeal of the game. Those characters level in a premade fashion. Both combat and explorations is in a... perspective that isn't a 1st person blobber. Those elements just part of the game instead of the whole of it. I probably forgot some more.
If those two types of games belong to the same subgenre then there is no sense to make any division of crpgs in smaller groups at all. Just mix: action rpgs, tactical rpgs, blobbers, dungeon crawlers, rogulikes, storydriven crpggs, etc... into one. Disco Elysium is the same as Jagged Alliance 2 is the the same as Skyrim is the same as Eye of the Beholder 2 is the same as Icewind Dale 2 is the same as QfG4. They are the exact same type of games, there is no point of making any sub-divisions to be able to compare games that are comparable. To be able to make threads where people are supposed to talk about some games and not the others, etc...
Sorry there is one division that apparently makes sense, crpgs made in Japan vs everything else.