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This is early access. Problems will arise, and problems will get fixed. Keep reporting bugs and enjoy the ride.
You aren't the only one now noticing it. I had heard there was a memory leak before, but I hadn't experienced it, even when playing for 4 hours. Since the update, it's a noticeable performance hit after 30 mins to an hour depending on area.
Whether it means anything or not, I'm running a 5700XT. As I have seen other say, at least this game reloads quick. A bit annoying for sure, but it's tolerable until they get a fix out imo.
This happened to me from Day 1, the last update had nothing to do with it.
UE5 is a piece of trash, people shoudl stick to UE4, why do they even bother going UE5. It's not like they're making graphcis that need it.
The memory leak for Palworld has been present since day 1 though