The Whites striker appeared to be given offside due to his arm, as he thought he had netted his seventh goal of the season in the 15th minute.
The incident sparked mass confusion due to the rule that only parts of the body that can score goals should affect offside calls.
Discussing the incident, BT Sport pundit Robbie Savage fumed: "Oh, wow, this is incredible.
"His body is onside, he's pointing to where he wants the ball. The line has been drawn on his arm, where it's not handball, on his sleeve, that's what they're saying is offside.
"That is quite incredible. That is the most unbelievable one we've ever seen. Wow.
"That is the worst I've ever seen in the history of football."
Meanwhile, former Tottenham and England striker Gary Lineker tweeted: "That's another ridiculous VAR offside decision to disallow Bamford's goal. I actually loathe the way it's being implemented."
That's another ridiculous VAR offside decision to disallow Bamford's goal. I actually loathe the way it's being implemented.
— Gary Lineker (@GaryLineker) November 7, 2020
To make matters worse for Leeds, Crystal Palace then doubled their lead through Eberechi Eze after Scott Dann opened the scoring.
However, Bamford did not let the offside goal deter him as he pulled one back for Leeds in the 27th minute.
Palace restored their two-goal cushion, though, when Helder Costa turned the ball into his own net three minutes before half-time.
Patrick Bamford had a goal harshly ruled out for offside by VAR in Leeds' clash with Crystal Palace on Saturday.