Palworld is enjoying a nice resurgence after the release of the Feybreak major update with a huge increase in players. Going from around a regular 45,000 players online to around 200,000 concurrent players. However, Valve have dropped the rating the Steam Deck Unsupported.
Looking at ProtonDB, the only reports I see of it not working well on deck are from 11 months ago, where people were getting full system crashes while playing. Those crashes sound like the deck is running out of ram/vram, and should no longer happen since the SteamOS 3.6 update that changed to zram.
So I’m not really seeing any reports for why it would be considered unsupported now.