Geez that's...a question. I'm not really confident in my ability to fully answer this, but I can do my best! The modern classics have remained largely in fashion, although pre-Sorrows Science Fiction took something off of a tumble off a cliff in the years of recovery. Pratchett, Tolkein, and others whose works lie outside of those sort of things? Yeah, they're still there. The 'old classics' were pretty foundational to the construction of post-Sorrows literature as an art form, as most writers (most any skilled roles, really) died during the Sorrows or had to bury their passions for long enough to keep humanity alive. So when kids started looking, they looked up what had been popular, then branched out from there. Some works didn't really hold on - Star Wars was actually one of these, sadly, as the variant of Science Fiction involved touched too close to home. A New Hope set off a lot of trauma. The series has some cult following (not actually a cult) but it's far less sweeping.
Humanity's understanding of the soul played a big part in the popularity of fantasy works, mainly because humanity accepted that large segments of the genre weren't quite so fantastical anymore, just taking place in different realities. Discworld certainly has a following, as does LotR, I could probably point to a dozen more if I had time to really think about it. Pre-Sorrows romance as a genre died due to the changes in how humanity 2.0 sees those things. Mystery and detective stories remained, but are in a way almost more fantastical than Fantasy, due to how the world of Practice War as it really started to produce literature again had changed so enormously. The idea of actually truly wanting to kill another human, or cause harm in that fashion, was essentially eliminated from humanity's psyche by the Elder First. Un-Othering, as
@Shwaggy put it, forgives a multitude of sins.
Military fiction...pass. Tragedy? Has had a recovery in the last few decades as humanity got far enough away from the Sorrows. Comedy is certainly present, but in a very different way to what we'd see it as, I think. In general, a lot of work is far more empathic and wholesome.
In terms of favourite genres? Fantasy is definitely up there, although the definition of that genre has shifted - as fantasy technically now covers murder-mysteries. Sci-fi has had a recovery of sorts, but it's much more meshed with fantasy than in our literature. Baseline dramas are still big, but they're very different, in this way following a quasi-Oriental model where a lot of the stories don't really have defined conflicts or even a concrete 'the end' point. And I know I'm only surface-skimming here.
The issue in giving you a proper answer here is channelling the culture of the very different world into a literary style that was formed from an amalgam of what appealed to humanity after the Sorrows happened. And that's pretty difficult. I can do art as a field, kinda, but breaking it down further is
hard. I hope this is at least something worth reading, though! Gonna do a vote tally as well, being delayed on closing the vote due to schoolwork. Grr exams.