Does this have monster of the week episodes?

Sometimes. Mostly the episodes were either two stories about Springfield that Freddy hosted or had a minor part in, or ones that he had a direct role in. But that didn't last long and eventually it became more of 'one cast/two stories' where it was more episodic and bizarre. A good example is one of the first with Tony Dow where he's someone on a camping trip who believes their guide is a vampire. Halfway through the show, that turns out to be a dream. The reality is that he and his team from the first half are really survivors of a plane crash forced to resort to cannibalism.

So not so much monster of the week as much nightmare of the week, if that makes any sense.