The answer is: when the song calls for it. I’m not sure how else to answer. Some parts will call for full chords, some parts will call for arpeggios, some parts will call for single notes. It depends on how the part is written, or whatever the guitarist feels like doing at the moment.
Full strummed chords might sound more intense than an arpeggiated chord, which might sound more somber. Things like that might tie into why a songwriter might choose to play things a certain way, but there are no rules and there are always exceptions.
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