It's a staple in red prison decks like Mono Red Moon, but even midrange and tempo decks run it in the sideboard to punish slow or multi-color strategies
Its just a pain to play with, and it has been banned from every format just to improve the lives of everyone involved
This combo will turn your board into 2 free Demonic Tutor actions every turn, including others turns
But draw-sevens are deathly powerful
Activating a table-wide wheel from the graveyard at instant speed is pretty insane disruption in red, and also allows you to hold up interaction during a turn cycle, wheel, and then untap with a fresh grip
Depending on when the cards were printed, there are slightly different ways to transform these creatures , but newer werewolves follow Magics more recent day/night cycle introduced in Innistrad: Midnight Hunt