Palp’s lead reads as “whenever a Sith ally inflicts a debuff during their turn they recover 20% of their max health.”
Darth Nihilus’ Wound in the Force unique reads as “at the start of each of his turns, Nihilus inflicts damage over time...”
It makes sense for his health down not to recover health since it is during an Enemy turn, but his DOT happens on his turn AND he is inflicting it.
Nihilus should recover 20% health at the start of his turn under an Emperor Palpatine Lead if he inflicts a Damage over Time.
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I think the reason why he does not gain health from inflicting a Dot, is because it is a unique ability, so he is inflicting it "passively", while attacking and inflicting a debuff would be "actively" inflicting it. Palpatine's leadership only covers "actively" inflicted debuffs, that is why Nihilus is left out from it.