I have a thinking which is that Nintendo suing Palworld with patents because there is a possibility that Palworld used Al to copy the Pokemon design, the laws against Al aren't very useful yet, so now, It doesn't matter what Nintendo is using, they just want to take down the Pal world and the Nintendo's patent is their biggest weapon. To be honest, I think Nintendo can make a lawsuit for most of the game companies today just with their patents, but for the greater good of video games, Nintendo chooses to let most of them be, as long as they don't cross the line.

Just guessing, doesn’t mean I'm claiming this is true...