My inclination is to look at the world as far as the story is concerned. If it's limited to the city, then that can be taken as the world. Wretched Hive would apply if it were contrasted to another location.
Stories don't tell us monsters exist; we knew that already. They show us that monsters can be trademarked and milked for years.![]()
My hunch is that it would be a Crapsack World only if we're given no indication that the world outside the city is better.
I tend to agree with this: they can coexist but don't automatically coexist. A Wretched Hive can exist in an otherwise optimistic setting, or a Crapsack World can surround a utopian city. We have to go by what we know of the setting.
I'm with Reymma: It's about the scope of the story. If the city is the story's entire world, then yeah it's a Crapsack World. If not, it's something else.
This gets complicated if the world expands later, but overall I think it's a good rule of thumb.
Writing a post-post apocalypse LitRPG on RR. Also fanfic stuff.

I asked this in ATT, but the person who responded said it'd be better suited here, so I'll just restate my question:
If the setting is primarily limited to a city, can that city be both a Wretched Hive (the city itself) and a Crapsack World (the general setting)?