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Palworld maker vows to fight Nintendo lawsuit on behalf of fans and indie developers
(www.eurogamer.net)
This is a most excellent place for technology news and articles.
Ah, I remember this controversy when the game launched. That person later admitted to modifying the meshes to make them fit better because they hated Palworld for "glorifying animal abuse".
https://www.dsogaming.com/news/modder-who-accussed-palworld-of-using-3d-models-from-pokemon-games-admits-that-he-has-faked-everything/
The article, which you provided does not make sense.
They quote the user in question, with text and link to their tweet and then have the link to the "confession" as just text, not clickable. Opening the link results in an error. Looking at the link though, you can see, that this was not even posted by the user in question.
You can see, who posted the post, which you are linking, in the url. This is a post from the user in question for example.
The provided evidence links to a (now apparently deleted) tweet from another user instead.
You are right about the user speaking out because of the animal abuse though. (source)
And they did scale the mashes (source), but only to make them comparable, because the different engines of these games work differently and have different scales. They did not edit them in other ways.