It is present, you just didn't please your citizens enough in that particular match.

Thank you for your quick respond.

When I googled it previously, there was something that first upgrade is when you find your second city.
I think that I did at least one thing from that list and had no single upgrade during entire playtrough.

It's very strange

Gonna give it a second shot. Thank you

Palace upgrades are tied to score. You get more upgrades as your score increases.

That said, sometimes the palace doesn't automatically pop up when you reach a new milestone; I don't know why. Click on the "Palace View" button on the unit card in the bottom right (or use the hotkey, I forget which key it is) to view your palace. You'll be able to spend all available upgrades on the palace view screen regardless of whether it popped up automatically or you selected it.

I think I found the issue. I'm playing on a custom map - Earth.
I'll try playing a normal new game. There was no problem with the palace view in previous Civilizations.

Edit: There is no problem when playing a New Game. Too bad, Earth was my favorite and only scenario. Don't know if it's a good move to disable it outside of the random "New Game" mode.