I really don't like what ToastedShoes is doing here. His attempts to monetize the IP of Nintendo, Disney, Universal, and others through game mods is one of the two major reasons why so many studios and publishers have become hostile to mods -- the other reason being DLC monetization. He shouldn't be poking the bears like this. I'm not surprised Nintendo acted so quickly.
I also hope there are emergency meetings going on at Nintendo and Game Freak because of Palworld. It's a clunky, disjointed, stylistically inconsistent, weakly motivated, and completely unpolished game that gets the fundamental mechanics and legally-distinct monster designs right! I felt the last monster collecting game I played -- Pokemon Shield -- was an enormous disappointment and essentially the same game I played back in the 1990's. I'm having a blast with Palworld so far and am glad someone finally delivered "Pokemon Breath of the Wild" that I wanted so many years ago. I hope Pocketpair is able to refine and polish Palworld given their sales success. I also hope Nintendo and Game Freak get off their butts and finally try to iterate, innovate, and evolve their stagnant monster franchise.