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I'm curious if this isn't similar to when Amazon was attempting to patent/copyright/etc. everything that wasn't nailed down.
While I can't speak to Palworld, it seemed like an asset flip from what little footage I watched, the concept of "sub-character" is obviously so large and already common place there is no way they could enforce it.
Though it would be kind of fun watching lawyers standing around in a court room discussing how ShadowLord92's Warlock on Warcraft's demon minion Jubtik qualifies as an encroachment of their patent.
On it's face its ridiculous and if we take it seriously its wholly unenforceable.