Knights in the Knightmare was a euroshmup.
I am not familiar with that term. O.o
An indie shoot 'em up made in not-Japan.
Or in other words, a European fan of Touhou decided to make their own Touhou, but with Blackjack and Hookers.
Not so much indie shmups as they were like, German-made SHMUPs typically for the Amiga that had weird gameplay mechanics that didn't really work with how shmups work, weird /movement/ that doesn't really work with how shmups work, and an emphasis on style over playing sanely.
Usually you'd see stuff like item shops, really elaborate weapon systems, ammo, weapon overheating, overzealous pixel perfect collision, inertia that made precise movement impossible, etc. It's kind of an overused term that people throw around to mean "bad shmup" but it's more "really, really deviant shmup," so you'll see people calling really traditional Japanese shmups that weren't good euroshmups even though there's nothing euro about them.
Also for realsies, there are some realllllly eurshmuppy Japanese shmups that were exceedingly well regarded, like Radiant Silvergun, Einhänder, Ginga Force, Lords of Thunder, Hellsinker, etc. so using it to /strictly/ mean bad clearly doesn't work !!
Knights in the Knyghtsläyer has a lot of shmup mechanics going on in the sense that the user interface is a shmup, although it edges into euroshmup territory, in the classic sense of a euroshmup, because A) you have wonky movement since the stylus isn't... entirely accurate. B) the enemy attack patterns are awkward. C) Weird hit detection! D) Weird behavior when you actually do get hit!!! and then E) the metagame is actually that it's a tower defense game and then the META meta game has you like breeding dead guys.
So Nights in White Satin is a euroshmup both in the sense that it's way, waaaay deviant in terms of its shmup mechanics, that its shmup mechanics ultimately don't work that well, and then the story's got this distinctly German feel to it because there's werewolves and nothing makes sense.