In which situation would it be better to use one or the other?
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If the list of options is short and consistent (not going to change based on another variable), they can be a nice choice aesthetically.
Some real estate search sites use this approach for defining what type of property you want. When successfully done, it is usually treated a bit differently than a list of toggles.
Wording is key. For example, assuming at least one selection is required, instead of:
Select the applicable categories
Select one or more applicable categories
The original text has only the plural "categories" to indicate that "more than one is allowed", which is (a) easy to miss and (b) there are so many systems which get this wrong (e.g., "category" when more than one is allowed or "categories" but actually only one is allowed at a time) that text which makes it 100% clear is a big improvement.