Generate a Palworld PalWorldSettings.ini
No game here is less tolerant of config mistakes than Palworld, and it fails without a word: one wrong character and the server starts up normally with every setting reset to default.
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Visual Settings
PalWorldSettings.ini
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The PalWorldSettings.ini format
All the settings sit on a single line. They go inside OptionSettings=( … ) as comma-separated pairs, and there must be no line breaks anywhere in that block. Text values take double quotes, booleans are written True and False with capitals, and rates are decimals. One missing comma, one line break slipped in by an editor wrapping the text, or one lowercase true is enough to throw away the entire block.
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The mistake that wastes an evening
A broken block is discarded, not reported, so there is no error message to go looking for. The server runs, players join, and everyone plays on default rates while you are sure you changed them. If your settings seem to have vanished, suspect a syntax error on that one line before anything else — and never open it in an editor with word wrap switched on.
Where the file goes
The settings file does not exist until you create it. Start the server once so its folders are made, then copy DefaultPalWorldSettings.ini from the server's root folder to Pal/Saved/Config/WindowsServer/PalWorldSettings.ini, or Pal/Saved/Config/LinuxServer/ on Linux, and edit the copy. Editing DefaultPalWorldSettings.ini itself changes nothing; the server never reads it for settings.
When the file is right and still ignored
If the syntax is correct and gameplay settings still revert, look in the world's save folder for a file called WorldOption.sav. It holds world settings in the game's own format, usually left over from moving a co-op world to a dedicated server, and while it exists its gameplay values win over PalWorldSettings.ini. Stop the server, back up the world folder, delete WorldOption.sav and start again; server-level settings such as the name, passwords and ports were never affected.