Palacios made his professional debut in 2018 with the Arizona League Indians, Mahoning Valley Scrappers and Lake County Captains, batting .361 with six home runs and thirty runs batted in over 45 games.[4] He did not play in 2019 due to a torn labrum or in 2020 because the season was canceled due to the COVID-19 pandemic. He started 2021 with the Akron RubberDucks before being promoted to the Columbus Clippers.[5] Over 103 games between the two teams, he slashed .297/.404/.471 with seven home runs, 48 runs batted in, 33 doubles, and twenty stolen bases.[6]
The newly-named Cleveland Guardians selected Palacios to their 40-man roster on November 19, 2021.[7]
After beginning the 2022 season with the Triple-AColumbus Clippers, Palacios was recalled by the Guardians on April 25, 2022, and made his major league debut that same day, starting in left field. He collected his first career hit in the same game, a single off of Los Angeles Angels starter Michael Lorenzen.[8] He played in 54 games during his rookie campaign, hitting .232/.293/.286 with no home runs and 10 RBI.
Palacios was optioned to Triple-A Columbus to begin the 2023 season.[9] In 56 games with Columbus, Palacios batted .217/.351/.318 with 3 home runs, 30 RBI, and 6 stolen bases. On June 11, 2023, Palacios was designated for assignment by the Guardians after Cody Morris was activated off of the injured list.[10]
On June 16, 2023, Palacios was traded to the St. Louis Cardinals in exchange for cash considerations.[11] In 32 games for the Cardinals, he batted .258/.307/.516 with 6 home runs and 16 RBI.
On the international level, Palacios is eligible to represent the Netherlands and Curaçao (through his Curaçaoan mother), Puerto Rico (through his father), and the United States (his birthplace).[13][14] He was selected to the Dutch national team at the 2023 World Baseball Classic.[15] He appeared in a single game, going hitless in three at-bats in a 9–5 loss against Taiwan.[16][17]