Episodic storytelling really shines in genres where world-building and character development matter more than a single, tight plot. Take adventure and travelogue stories, for instance. Following a crew sailing from island to island in a fantasy archipelago just wouldn't have the same exploratory feel if it was one linear race against the clock. You need those discrete stops to soak in the local myths, face a monster-of-the-week, and let the crew's dynamics shift slightly with each new port. Slice-of-life is another big one—without a heavy overarching conflict, the charm comes from stringing together those small, poignant everyday moments, like in 'The Long Way to a Small, Angry Planet'.
I'd also argue it works wonders for certain types of mystery or procedural series, especially if you're more interested in the 'how' of solving unique puzzles each time rather than a big personal vendetta for the detective. The format lets readers dip in and out without feeling lost, which is perfect for busy people who still want that bite-sized satisfaction of a solved case. Comedy can benefit too, since running gags and callbacks build over time across otherwise loosely connected hijinks.
Honestly, I sometimes prefer an episodic rhythm for ongoing web serials; it gives the author room to explore side characters without derailing the main thread, and you get this lovely sense of a living, breathing world that exists beyond the protagonist's immediate problems.