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There should be a combination of the two where there are just ordinary wild pokemon going around and when you get close to them then the let’s go way of catching sequence should occur and then there should be hostile Pokemon walking around which are marked red who are also more prone to attack you and with those a typical wild pokemon battle sequence should occur in which the player has to defeat said hostile Pokemon in order to get a chance to catch it.

This would be the most immersive and realistic approach to wild pokemon catching/battleling.