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In terms of a site's SEO, is the following format best:

https://www.example.com/query/who-is-the-hippo-in-Moon-Knight

Or can a website do just as well SEO-wise if it has URLs like this?

https://www.example.com/query/62677ebabe5ab3e33e93f7c4

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Yes it matters if it's human readable. It's a minor ranking factor. It probably won't make or break you, but, think of it like doing an extra credit question on a quiz. You'll get a few bonus points for it.

There are two areas it matters. The first is initial rankings. If you have human keywords in your url you will rank higher than an exact duplicate of the site with a long seemingly random url. If you've ever seen the seo table of elements urls are on there. If you google search a term on desktop if the search term is in the url, that term will be bolded. That means Google considers it to be a ranking factor for the term. keywords from your search are bolded by google, urls historically were

SERP bolded keywords in meta descriptions Humans respond to urls that are written to humans so it leads to an increase in CTR. More people click to them. A high CTR page will grow in rankings over time.

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