Wanted criminals in Palworld are unique enemies that offer various rewards upon capture. Capturing and killing them have different effects: capturing allows you to dismember them later to obtain special materials.
What are the benefits of killing or capturing Palworld wanted criminals?
If you're just completing a bounty mission, both killing and capturing count as completion.
After throwing a Pal Sphere to capture the target, you can keep them and later process them with a Butcher Knife or Pal Disassembly Line to obtain extra loot in addition to the standard proof drop.
If you only want the proof and don't care about extra materials, killing directly is faster.