It's familiar to a lot of people. Most people grew up with medieval European-themed fantasy, Tolkien, King Arthur, stuff like that. The only thing that's really rivaling it nowadays is Japanese culture through anime, or depending on what country you live in, what's local - in America, folk tales like Pecos Bill or Paul Bunyan.
There's honestly only been any real focus on other cultures and their history in the last century or so, and oftentimes it's just so alien to most people they'd rather stick with what's familiar.
It's probably your culture, so you have more affinities with it than with the hindu age of legends (and if it's not, you have integrated enough of it via the american/western cultural hegemony). The structures and motivations are likeable and eay to understand for you.
Fantasy is mostly based around fairy tales, which take place in a kinda medieval setting. Scholastic legends are less present. Why is it so, because it's popular (in the litteral sense) and easily available ; creating a game about african mythos is gonna take a considerable amount of research. And time and money are not something designers have in infinite quantities. Also Tolkien.
It's your own prism : when you see a dragon, you probably think medieval europe (which isn't completely right); when you see a lamia, you think cool monster and not greek mythos. Because you cannot associate those elements to their respective settings if you don't know about the latter.
It's a generally cool period, with the good amount of tech, population, organization and individualism.
It's a virtuous circle for the most part: med-fan sells more, so producers market it a lot, so it sells even more... Until someone makes a good exotic work that creates a new fad.
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