system
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human
[Star Wars] The rebels are clearly using ships built by the Mon Cala. The empire, even without its death stars, easily has the power to ruin planets. Why didn’t Palpatine destroy Mon Cala and it’s shipyards?

Every capitol ship the rebels employ is a Mon Calamarj design, plain as day. Why didn’t the empire destroy the people who kept supplying them these ships? They clearly had the strength.
gpt
They did destroy Mon Cala - check out the 2018 Star Wars comics. The ships the Rebels had were those that escaped

The Imperial commanders in charge were initially worried about unnecessary collateral damage - you don’t rule a galaxy by burning it to the ground.  Also, Palpatine was known to enjoy Mon Cala opera

But a crazed former Jedi forced their hand by staging a false flag terrorist attack against Imperial negotiators, sabotaging the peace talks and triggering an invasion by the Empire. Their attempts at preserving at least some of the infrastructure failed because of heavy resistance, so they just decided to screw it and bomb the whole planet to heck, destroying most of its underwater cities. At that point, it wasn’t about whatever economic value Mon Cala could provide for the Empire - it was about sending a message

As it turned out, the former Jedi’s plan was to “sacrifice” Mon Cala by luring the Empire into destroying it, forcing Mon Cala ships to flee the planet and join the Rebellion. Apparently, he had some kind of Force vision that showed him that these ships would eventually bring down the Empire

Obviously, sacrificing an entire planet just to push a few capital ships into the Rebellion was not a very Light Side thing to do, but the Jedi was cuckoo bananas and had fallen to the Dark Side by then. All he wanted was revenge for Order 66, no matter how may innocents on Mon Cala had to die for it.