Yeah, you did not read any of the articles about this or understand the suit.

Nintendo is putting this forth as a patent issue, not a copyright issue. I presume this is because even they are smart enough to realize that they would probably lose a copyright challenge. However, the patents they are attempting to claim are clearly bullshit. They're just doing this as a bludgeon to bully a company they don't like, most likely in the hopes that the sheer cost of litigation will break them.

If they were going to propose that some of the monster models from Palworld originated as Pokemon model rips, they could arguably have a leg to stand on. But that's not what they're saying. The outcome of this case is not going to have any impact on copyright issues. Rather, the potential result is much more dangerous -- it would confirm that a big company can just come in late and retroactively lay claim to large swathes of mechanical concepts that have already widely in use in a particular industry for decades.