I have recently started playing Palia on Steam. It’s a great game, but is in Beta so has a few bugs.
The issue I have experienced is that when I try to go fishing, I am unable to cancel the action or catch the fish. I can press Enter on my keyboard and type /unstuck, but the issue still persists. It essentially becomes stuck and initially I thought the solution was to close the game and re-open it.
Solution: Switch to your pickaxe or axe. Press left click to swing once. Switch back to your fishing rod.
You will then be able to fish normally. If it happens again, just repeat the above solution.
It’s not an ideal solution but is a suitable workaround for now until it is patched.