Basically clone the repository and just do:
docker compose up -d
You can check if the Server is running by using:
docker compose logs -f
This is how it looks if it worked:
Composing the Docker will create a server folder.
Copy from server/DefaultPalWorldSettings.ini to server/Pal/Saved/Config/LinuxServer/PalWorldSettings.ini.
Then you can edit server/Pal/Saved/Config/LinuxServer/PalWorldSettings.ini to fit your needs.