I don’t really know anything about that but I’m not sure why you’d want to use SteamOS for it? Bazzite is pretty much functionally the same as SteamOS.

I generally go with Debian, makes a good stable base. Then over SSH you can use a helper script like LinuxGSM, or use Docker containers. Or both? I’ve seen containers that use LGSM inside…

For the web aspect, you can use DockGE or Portainer as a simple interface for the docker containers, but if you want to dig into the game configs from the same panel, you might want a full grown game management program, or a system level panel like Cockpit.

One cool looking option is to set up a full out hosting panel like AMP, though admittedly it gives me weird issues often enough to think about downgrading to more basic options again. It was meant for a hosting seller environment, and behaves accordingly.

Any x86 distro can run SteamCMD.

Anything would be fine I guess. Try fedora server. It ships with a gui (cockpit) for basic management tasks. Maybe it suits you

https://fedoraproject.org/server/download

https://docs.fedoraproject.org/en-US/fedora-server/

The distro doesn’t matter.

A Debian 12 (Bookworm) with Cockpit for server webui, Portainer for docker webui and then installing a docker image, f.e. https://github.com/jammsen/docker-palworld-dedicated-server, would be my recommendation.
Makes it dead easy to selfhost other game servers as docker images too.

I would increase BASE_CAMP_MAX_NUM_IN_GUILD and maybe also BASE_CAMP_WORKER_MAXNUM for the dedicated server.
There’s raid bosses that you summon in camps, and it is nice to be able to have a camp that is dedicated for said raid battles.
Increasing workers allowed per camp allows you to make those battles easier as you have more troops out at the same time.
https://github.com/jammsen/docker-palworld-dedicated-server/blob/develop/docs/ENV_VARS.md