The UI is still a bit clunky and having to use that trick to join a specific server with a password is a bit of a hassle, but the devs will probably fix it later.
Since 0.1.3.0, you can directly put your password by ticking the "Enter Password" checkbox.
Just update Palworld Server Tools on steam and that should do the job.
Update by doing
steamcmd +login anonymous +app_update 2394010 validate +quit
If you're using a custom directory installation for your palworld server :
# First enter steamcmd
steamcmd
# Force install directory
force_install_dir /path/to/your/palworld/server/directory
# Anonymous login
login anonymous
# Update the server
app_update 2394010 validate
# Wait for it to finish, then exit
exit
Now you can launch your server again and it should work.
Make sure you make a backup of your server before updating.