Reset Palette Position is an action (a button), not a toggle. You will find it behind the gear (settings) icon in the header of the floating command palette, which opens a small settings popover.
What it does
The palette is movable: you can drag it around the canvas to wherever suits your work. This action snaps it back to its default corner, the top-right. Use it whenever the palette has drifted somewhere awkward and you want it back in its familiar spot.
When it is available
The button is disabled when the palette is already at the default position, and its hint then reads: "Already at the default corner." Once you have moved the palette, the button becomes active and its hint reads: "Snap back to the default corner."
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