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The Pokemon Company releases a statement regarding Palworld: Inquiries Regarding Other Companies’ Games
(corporate.pokemon.co.jp)
this post was submitted on 25 Jan 2024
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Neither of those things are actually encouraged by the game. Attacking civilians causes guards to come after you, and nothing in the UI indicates you can capture humans (you don't get a catch % when holding a ball and targeting them like you do with monsters). It's only when you do throw a ball at them that you find out it is possible, but the catch rate sucks and they're not worth using.
Meanwhile it's made abundantly clear that Pokemon are sentient, so the brainwashing and dogfighting rings aren't any more ethical if you want to argue that way.
Alternately, it's a game. I'm against war but I play plenty of war games.