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That mod can give nintendo the reseon for killing this game.
It because their is no 'pikachu' and no word is 'pokemon' the game can exist
"Fair Use is used to argue that certain infringement is OK because it is, say, educational, satirical, or non-commercial. A mod, free or not, would still involve a modder's use of copyrighted material to create a derivative work, and would most likely be outside of Fair Use's scope"
So id say its risky.
If I owned the game I would feel safer without pokemon mods xD I dont think Nintendo can do anything vs Palworld, its possible use of derivative AI or not etc...but if you look at the pokemon mod trailer, its very provoking, copyright wise... XD
This isnt how it works.
"This mod appears to have been inserted into the game through a backdoor in the code, even though Pocket Pair has not yet released official mod support and the mod is unapproved."
Interesting nonetheless. Also lil bit fishy its a youtuber saying they will show more etc but no link, maybe just vaporware / video editting for subs?
We will see. The gameplay video is impacting tho xd