As far as gameplay goes, palworld is nothing like Pokemon. Sure, you capture monsters in an open field, but its combat is not turn based and it has a large base building emphasis, for instance.

Now, the monster design in pal world is (I think intentionally) very close to Pokemon’s, while also giving them guns, which I suspect is what triggered Nintendo’s action. You can find plenty of Pokemon likes that match its gameplay much closer (cassette beast, tented) that haven’t caused Nintendo’s ire.