The concern over children liking Palworld is akin to all those unfounded concerns about shooter games “causing” violence.
Humans, even small children, are VERY capable to separate fiction from reality. There’s no problem at all about a kid wanting to play a game about catching animals and using them to build your base.
That might actually be true up to a certain age. She was really into Powerpuff girls when she was 5, and I had to switch it to something else because she was aggressive a lot. It was like a switch turned off a week after I stopped ppg. Anecdotal, but yeah some things are not suitable for some ages.