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Are you enjoying Palworld?
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While all of that appears to be true, that doesn't mean Nintendo/TPC aren't able to make this small studio's lives a nightmare if they wanted. I have a feeling that the level of scrutiny the studio will be under from now on is going to inhibit any real innovation, as they're already walking a very fine line as it is.
It's also worth noting that they're both Japanese companies, and Japan has different views on IP than the rest of the world. I don't really know enough to go into detail, but it's entirely possible something a company from the US could laugh off is enough to get action taken in Japan.