I don't dispute that Palo Alto is working fine. The job done by third-party anti-virus software is to find "suspicious" patterns in files and stop them from infecting your Mac. Since they can't spontaneously infect your Mac unless you provide your Admin password, the patterns they find are moot.
But the kernel panics they cause when they find "suspicious" patterns are real.
That kernel panic was a Page fault, a reference to addresses not owned by the task making the reference. In occurred in launchd, the always-running process responsible for starting up every task running on MacOS. The extensions present at the scene of the crime were Apple File System and core crypto extensions.
the third-party extensions loaded are PaloAlto.
Unless you have other panic reports that says otherwise, this is being caused by PaloAlto.