And I thought I would be the rude one, telling him he is a loser. You don't have to go that deep into the plot dude. Whether or not Yoda thinks Palp is some Dark Sith or what not is rather irrelevant, because he doesn't do anthing about it, as we see in the OT.
BUT, not to sound too much like an ass, he probably does not know it because the force sends him cloudy messages.