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他社ゲームに関するお問い合わせについて|株式会社ポケモン|The Pokémon Company [their reply about Palworld]
(corporate.pokemon.co.jp)
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Nah, it's just them blowing hot air. If there was any legal grounds for them to stand on they would have already started huffing and puffing. Something Nick from Second Wind did a good job of pointing out is the fact that Palworld is also on Game Pass. Steam has already shown they're willing to knuckle under for Nintendo but Palworld is still there and I really don't see Microsoft opening themselves up for litigation by Nintendo.