Palworld is a bit different on Xbox compared to Steam in part because of Microsoft’s certification process.
Over on the Palworld Discord server, the game’s community manager Bucky clarified that the versions of Palworld are “not the same between Steam and Xbox”, as in Steam v1.2 and Xbox v1.2 are different even though the version numbers are the same.
“There seems to be some confusion that Steam and Xbox are ‘missing features’. This isn’t entirely true,” Bucky wrote on Discord (thanks, Windows Central). “Some features may be slightly different or have different value but other issues like the missing exit game button etc are not a result of an ‘older build’, these are separate issues.”