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Game Pass gives subscribers access to a rotating library of games for a monthly fee, so many players wanted to know whether Palworld would be part of it at launch.

Yes. According to the source, Palworld had a simultaneous release on Steam and Game Pass on January 19, 2024. Players could also purchase it separately for $29.99.
For Game Pass subscribers, Palworld's launch meant access through the subscription service, including features such as online multiplayer.
Other titles also joined Game Pass around the same release window. Xbox listed F1 23 and Turnip Boy Robs a Bank for January 18, 2024.
The source listed the following Game Pass subscription options for players interested in Palworld and the wider library:
A Game Pass subscription can also provide access to other survival or crafting-adjacent games. The source examples included:
Game Pass libraries change over time, so any listed game can leave the service with or without advance notice.
At launch, Palworld was not optimized for Xbox Series X/S. That means Pocketpair had not yet completed the additional work required to fully use the capabilities of those consoles, such as improved visual fidelity, higher framerates, and faster load times.
Because Palworld was in early access, the source noted that technical improvements could arrive later.
Pocketpair stated that Palworld would not support cross-play or cross-progression at launch. The developer also said it planned to make those features possible as soon as possible.
The source also reported no exclusive Game Pass perks or content for Palworld at the time of writing, though that could change later.
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