Is the Palia app bannable?

No, you can use it without any risk of getting banned.

I've had direct communication with S6 Chief Revenue Officer WizardCrab, who confirmed the app is allowed:

"I don't know that there's an official statement I can make, but in general it's really not in our best interest to discourage folks like you from making tools that support Palia. So you don't have anything to worry about."

"I think the only one that has raised some eyebrows is the in-game app that can tell you where all of the resources are even when you can't see them. But because you're not competitive over resources in our game, I don't think it really matters (the way it might in like New World for instance)."

WizardCrab Confirmation

WizardCrab also publicly stated in the official Discord that S6 does not care about 3rd party addons like this one.

While the Palia TOS mentions "3rd party applications that provide unfair advantage are not allowed without prior authorization":

• This map has not been determined to provide an "unfair" advantage
• It has been regularly checked by S6 since early 2024
• It has been continuously "authorized" via direct dev communication

• Thousands use the app daily with zero bans reported
• The app has been available and monitored by S6 since early 2024
• If S6 changes their policies, the app will be updated immediately

Warning: Sometimes support teams (not S6 staff) share incorrect information based only on TOS without knowing about the explicit approval. There's also occasional misinformation spreading on social media platforms.