One of my favourite authors, Daring Diane, releases the whole story at once, which is a fun way to go and doesn't make them any less memorable - if anything they're more so, like finding a completed old classic on the net.
Most people (including myself and most of my favourites) tend to do chapter by chapter from what I've seen. It's very difficult to completely finish a story with no feedback or confidence that anybody is liking where it's going. It also makes you move beyond constantly re-editing earlier parts to fit new changes, and just work with what you have. On the flipside, it's easy to lose interest if you drag the writing out for so long that it gets beyond the stage where it's still revealing anything new and exciting to you as the writer.
Planning can help or hinder both paths. It can make sure that you have a clear path to the end and don't end up with a story which just fizzles out or traps itself. But it can also leave no surprises, and make everything too confusing if you significantly change it, leaving you with a cutting block and no good way to make decisions.
Due to going chapter by chapter, I have at least 3 unfinished stories which I wish that I'd finished, so now prefer to finish anything before publishing, or just stick to short one-offs. On the flipside, because I never publish anything which I don't finish, I have literally entire novels' worth of ABDL stories which nobody has ever read, or just a few people have read drafts of.