Building on WT-14684, assuming that's successful, make changes to test/format to support palite and test it with more extensive runs to verify that it is more capable than PALM.

This ticket covers enabling PALITE in the test/format, which currently runs with PALM. The work builds on the implementation from WT-14684, which was validated with basic tests.

As part of this scope, we will also address related PALITE bugs as part of enabling it with test/format. If any issues are found to be larger in scope, we will handle what is feasible within this ticket and create follow-up tickets for the next sprint.