Baggy or cargo cycling shorts are the go-to choice for mountain biking, casual riding, bikepacking, and commuting—basically any time you want freedom of movement off the bike or prefer a less form-fitting look. They typically feature a loose outer shell with pockets for storage, and many include a removable inner liner with a chamois for padding.
The biggest thing to watch for is liner quality. Not all baggy shorts come with a chamois, and those that do often have a basic one that won't match the comfort of dedicated road shorts on longer rides. If you're planning rides over two hours, consider upgrading the liner or wearing a separate padded short underneath.
Keep in mind that the loose fabric can occasionally catch on your saddle during aggressive riding, and they're less aerodynamic than fitted options. But for trail riding and everyday use, the convenience and comfort off the bike usually outweigh those trade-offs.