Hello Carl-L, apologies for the delayed reply.
Upon reverting to a previous build (Build 24088745), I noticed that the fullscreen display mode is now available, which I then set to a resolution of 1280 x 800. After this, I enabled Auto SR and restarted my game. The UI flickering had disappeared completely during my playtime, and performance was stable.
Would my only option for now be to wait for Palworld to fix the fullscreen issue? I have checked on the game's Steam page forums, other users have stated that exclusive fullscreen has yet to be reimplemented. I appreciate your assistance on this matter.