While I'm still not sure how to make the items in palette house without crashing but at least I managed to build it so the miis won't have that annoying bubble that forces you to play the palette house and crash anymore.
This is for those who crashes on drawing and want to remove the chat bubble
For those who are interested in how :
export out your saved TLD data
Go to LTD save editor
https://ltd-save-editor.pages.dev/
Import your saved data inside
Go to the player category and select the buildings. Then search for palette house and change the 0 to 1
Now press the export all button
Extract the LTD save zip file
Also extract the step 1 exported saved data (you'll need this later)
Now from the extracted LTD save file. Copy all the "UGC, player.sav, Mii sav, map.sav" Inside the extracted file
Look for the extracted (step7) file, go inside until you see the same "UGC, player.sav, Mii sav, map.sav"
Replace with all the (step8) copied stuff
After replacing all of them. Compress that folder with a lot of number like "010051F0207B2000" For example into a zip file
Finally, import the zip file back into your game
Now you can build the palette house in your island builder and your Mii won't have that bubble that forces u to build and open one anymore :)
I hope this helps.
It's my first time posting in here so if there's anything wrong with my post pls let me know. Im just trying to help those who have the same problem I had for weeks.