Watched this video. I think a better description of the genera is Modal RPG. The genre has a battle mode, a dialog mode, and a navigation mode. Pokemon is a modal RPG, so is FF7, undertale, Octopath.
Modal games are typically a little jarring to play, especially since it traps you in modes and feel like you have lost your freedom.
Of course there is a modals in most games. Cyberpunk has them all the time. So maybe its the lack of freedom that makes this genre standout.