LitRPG is a very big genre that many types of stories fall into.
LitRPG can encompass:
MMORPGs - Sword Art Online (or any other trapped in a video game for that matter where there is a semblance of a stat block)
TTRPGs - These have a wide range of options from minimal to a lot of rpg stats (Goblin Slayer/Konosuba), most in this genre take place in medieval settings, since they're based on things like D&D and Pathfinder. (Some blend between genres, as Overlord 'takes place in a video game world', but the author explicitly has said they essentially weaved together all their abandoned D&D campaigns that he was a dungeon master for, but from the perspective of the BBEG).
CRPGs - These are quite rare, but in essence, anything that is like the older single player JRPG games fits in this category, where a few people have powers and everyone else is just an NPC, but there are stat blocks.
The Rest - Anything else that decides to use stat blocks, but doesn't explicitly follow the formulaic setting of RPG games fall in here.
The main thing to keep in mind is that stat blocks and number go up are important to readers. Especially early. "Is it wrong to pick up girls in a dungeon?" starts out heavy on the LitRPG and divulges from it for the most part later on, it's still there, just an undercurrent.
I've had very few people complain about the fact that I went from status block updates every chapter to the fact we only get them about every 20-30 chapters now. It all depends on how you set up the RPG system behind the scenes to explain it. In practice, readers of LitRPG want a system they can grasp the basics of. It should follow obvious rules, even if the meaning behind those rules are obscured from them.
As a fair warning from someone who writes in the genre, any time you buck any trend in LitRPG, you will get vocal readers who will write comments, sometimes reviews, about how awful the story is with their reason boiling down to "The main character isn't OP enough". Many of the readers of the genre want to, as far as I can tell, read a more fantastical version of critical role. They want it to be bound by the rules of the system you impose, but also have the system bucked by overpowered abilities or items that are the reason the main character is succeeding. In essence, they want you to first develop the illusion of an entire system with complexity rivaling D&D, and then create a fantastical narrative above it.
Note that I said, "the illusion of an entire system". You don't need to actually create the hard and fast rule books 100+ pages long, you just need to develop a set of principals yourself, such that you can create the rulings on the fly that continue to make sense with the rest of the system. A lot of LitRPG authors drop their stories because they fail on this front, and they end up overwhelmed by the rules they made for themselves, or trapped narratively as a result of it. I started from the fundamentals of how and why the system existed, this is not revealed to the readers, but it lets me intuit what rules it follows, such that if I had to make the rule up again in the future, I'd likely come to the same conclusion, or something close to it.
As an example: If your rule system was put in place by an errant god who wanted entertainment via the fighting of humanoid races with monsters, then you should understand that any rules your system would follow would create interesting, flashy fights, and that abilities are focused around that entertainment, and less around boring every day factors. You just put yourself in that god's shoes every time you grant abilities or items to people. That drastically helps keep the system self-consistent.
