Palacios began his career with San Lorenzo. He made his professional football debut on 21 September 2018, featuring for the final twenty-nine minutes of a 3–2 victory over Patronato at the Estadio Pedro Bidegain. Aged 16, it meant Palacios became the club's youngest ever player in Primera División history. He made five further appearances for the club, which included his one and only start on 10 January 2021 against Banfield.
