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TLDW: Moon Channel posits that the lawsuit isn't about ripping off Pokemon designs or even gameplay patents, but Nintendo trying to slap down Sony whom they see as muscling in on their territory by trying to capitalise on Palworld with merchandise, anime, etc
I don't think the Sony and Nintendo bad blood argument makes much sense. Doubt the reaction would be different had any other giant media conglomerate tried to make Palworld into a thing.
Very fun to learn these companies are just sitting on a proverbial pile of nukes with those patents just in case. Normal system.
I found a YouTube link in your post. Here are links to the same video on alternative frontends that protect your privacy:
