These days, there is a plethora of ways to classify or categorize almost anything, and fantasy fiction is certainly no different.
The Masterclass system lists eighteen different fantasy subgenres, yet almost no fantasy novel I’ve written fits neatly, or even not-neatly, into any one of those classifications, and that’s true of quite a few other writers I know.
“Discovery” lists fifty fantasy sub-genres, and only a handful or so have the same categorization as the Masterclass system, while Wikipedia offers a listing of thirty fantasy subgenres, with a disclaimer that the listing doesn’t encompass everything.
In Rhetorics of Fantasy, the scholar Farah Mendlesohn (a lovely scholarly lady, by the way) takes a different approach, by providing four ways of classifying fantasy: portal/quest fantasy; immersive fantasy; intrusive fantasy; and liminal fantasy, the last of which is fantasy where the reader really isn’t sure whether it’s fantasy or not (if I understood the explanation correctly).
Then there are those who simply break fantasy into two types: high and low.
In effect, almost everyone has their own definition/classifying system for fantasy, and I’m no different, although I haven’t seen any other classification like mine (not that someone hasn’t done it besides me, just that I haven’t seen it).
My “system” breaks fantasy into two types, one type where the characters live fantasy lives in a fantasy world/universe, and another where the characters live “real” lives in a fantasy setting. By “real” I mean that the characters have to have jobs and a way of supporting themselves, and that the economics, politics, society, and magic all work logically and consistently in that fantasy setting.
Of course, in the end, I suspect few readers really care about classifying what they read, or even what “classification” or type of fantasy the novel happens to be, but about how entertaining they find the novel, and possibly about what insights it provides.