Mind you, in this I may or may not have lost a 'real' palette when I deleted a misnamed palette.
Step 1: open the highlighting tool

Step 2: duplicate a palette - in my case the Parshanut one

Step 3: observe that there is no duplication of the requested palette - but a duplication of the palette below it. So close the pane and reopen it.

Step 4: Notice that now it tells me that it did what I asked ... that I should pay no attention to what it showed me before.
Like I say, I may have deleted a 'real' palette while testing this ... who knows?