This is the problem with spending millions of dollars on games and focusing on profitability over actual quality or expression. Video games are fundamentally an art medium. You can choose to make some uninspired cash grabbing trash, and can even make a whole company built around that and make profit. But are you going to make a great game that way? Probably not.
You’d be better off with half a dozen people with passion and a comparatively minuscule budget. You might have to scale back from ultra realistic graphics and massive explorable areas with dozens of voice actors, but I don’t really think that makes games any better anyway. A little 2d rpg with really basic pixel graphics can put a big project to shame if it’s made with passion and emotion.
Having played Palworld a bit, some of the monsters are distinct from Pokemon, but some of them are incredibly obvious clones.
But like, looking back at some of the knock-off toys I remember seeing in the 80s and early 90s? It definitely seems like copyright has gotten more robust in its attempted overreach.