Just an update. I'm having this problem also. PayPal customer support was no help, referred me to their technical support people. Received the response quoted below today. I'll follow up here when I hear more from PayPal
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I have determined this is related to a known issue and I have added you to the list of impacted accounts, so the issue can be resolved once a resolution is found. This ticket will be placed on an 'On Hold' status while we await a response from our Engineers on this issue. No further action is required of you at this time and I will follow up with you as soon as I know more.
end quote