You can connect from Xbox to your Palworld server. Xbox clients cannot use Direct Connect (IP and Port), so the server must run as a public Community Server with the connection platform set to Xbox.
You can set this from the Startup page — there is no need to edit any files:
Open the Startup page and find the Connection Platform setting.
Change it from Steam to Xbox.
Restart the server from the Console page to apply the change.
Your server will then be joinable by Xbox players from the Community Server list. Only Steam and Xbox are supported — PlayStation is not supported by Palworld dedicated servers.
If you need help with this, please submit a ticket.