Palacios is a youth product of
Unión Española and made his professional debut with the team on 19 February 2018 in a 1–1 draw against
Deportes Antofagasta. He scored his first on 5 October 2019 in a 1–1 draw against
Universidad de Concepción. On March 22, 2021, he was announced as a new player for
Brazilian Série A side
Internacional on a deal for a year on loan from Unión Española and a transfer promise for additional three years. Following Internacional, Palacios switched to
Vasco da Gama in April 2022. The next year, he was loaned out to Chilean club
Colo-Colo. In the second half of 2024, Colo-Colo purchased 50% of the rights of the player. The next year, Palacios moved to Argentine club
Boca Juniors. ==International career==