With the Clarets back level at 3-3, after trailing 1-0 and 3-2, Chris Wood - who had scored the second goal, his 50th in the Premier League - got goalside of Joachim Andersen, and was hauled back.
Referee Simon Hooper ignored the incident, with VAR not appearing to intervene either.
It left many puzzled, including Sky Sports pundit Alan McInally, andf Dyche said: "It is bizarre. I am all for the game allowing some of the soft things, and I think they are trying to find a better balance with the physicality in the game, sensible physicality of course.
"That is bizarre, I have seen it back, two hands across his chest, and whoever is looking at that, I have no clue how they can’t see he has brought him down."
James Tarkowski was also booked in the first half for acting as peacemaker between Wilfried Zaha and Matt Lowton, and will now miss the visit of Spurs next Sunday - as will Ashley Westwood - for five bookings.
Dyche added: "The other one is James Tarkowski getting booked, it is nearly impossible, he is trying to stop trouble and he ends up getting booked.
"The referee had one of those games today, not to the level we would hope.
"I think Maxwel (Cornet) has half a chance of a penalty when he pops it round the corner, I have seen that back, and the player pushed him in the chest.
"Zaha did that on the edge of our box and stumbled and went down before he has even let it go round the corner and he gets it so it is one of those things.
"I thought the referee had a quiet game today, he wasn’t clear minded I didn’t think, and on another day you get them but we didn’t today."
On the game itself, Burnley fell behind to Christian Benteke's goal, before Ben Mee and Wood headed them in front.
Benteke levelled matters, and Marc Guehi put Palace 3-2 up at the break, before Cornet's stunning volley: "First half we didn’t start well, there was a bit of talk about them being a good side, which they are of course, but we were on the back foot and not the front foot.
"We corrected it during that half and I was pleased with some of that half and the second half is a different story. We went after them, we pressed them and went a lot higher up the pitch and were a lot braver with our performance so I was pleased with that.
"The mentality to come back, because you could be disappointed going in at half time at 3-2 but we came out in the second half and scored a fantastic goal and had a couple of other good moments and Vyds has a golden moment at the end but their keeper made a fine save to be fair."
Cornet netted his fifth goal in six Premier League starts to maintain his love affair with the supporters, and Dyche said: "We enjoy what he is doing, he is getting towards true Premier League fitness I think, and he has played football during the international break and he looked alive, especially second half.
"In the first half he was sitting on the deep laying midfielder and he didn’t need to.
"We told him to come off that position and go and press which he did in the second half, and he has brought energy but he brought quality as well and his finish was a fine strike."