It kinda doesn't. The scope of the story is small and it's geared towards a younger audience. Also, everything is CGI. Other than Mando, I don't recall another human actor (besides stormtroopers) with more than about 3 minutes of screen time.
While that feels very Star Wars Galaxy, I think the movie suffers for it. That being said, it was pretty funny in parts.
Comparing to 7-9 is unfair because other than a few signature pieces, it's a completely different kind of movie. There is no heroes journey. No one is changed or evolves. There is no compelling mystery to solve. And the scale of spectacle can't begin to compare to a main saga movie.
My favorite sequel is TLJ and I'd say M&G is most like that in tone (smaller scale, more personal scope, humor) but also it's just a very different movie.

As a massive long time fan, I'd say the issue is Star Wars was originally a post-war film, and it's been deliberately held back from evolving to keep it recognizable. As a result, it doesn't resonate with audiences the way it used to. It's just not relevant any more. Andor was a great example of what they can do within the Star Wars galaxy to be relevant.