If you are planning to add Duo MFA to Entra as an extrnal authentication method, no, free Entra ID is not sufficient. https://duo.com/docs/microsoft-eam#prerequisites notes you need at least Entra ID P1.
This would be for the traffic flow:
GP Client access request >> Palo Alto >>SAML>> Entra ID >>OIDC>> Duo MFA >>OIDC>> Entra ID >>SAML>> Palo Alto >> GP Client access granted
If you want to use Duo SSO with Entra ID as the external SAML authentication source, then yes, this would work with Entra ID free. The Palo Alsto SSO instructions are at https://duo.com/docs/sso-paloalto-globalprotect and information about using external SAML authentication sources for Duo SSO (like Entra ID) is here: https://duo.com/docs/sso#saml.
This would be for the traffic flow:
GP Client access request >> Palo Alto >>SAML>> Duo SSO >>SAML>> Entra ID >>SAML>> Duo SSO + Duo MFA >>SAML>> Palo Alto >> GP Client access granted
Duo, not DUO.