Welcome to the Community. I'm here to help you connect PayPal as a bank account successfully.
You can perform some basic troubleshooting to isolate and fix the connection problem. I suggest you start by manually download bank transactions.
If the problem persists, please follow the remaining troubleshooting steps in this article (scroll down to Step 2): What to do if you get a bank error or can't download transactions in QuickBooks Online.
In case you encounter an error along the process, please let us know. This way, we'll be able to provide some information about what you can do next to resolve the issue.
I've attached an article you can use to learn about the difference between the PayPal app automation and bank connection: Importing PayPal transactions into QuickBooks Online.
Keep us posted if you need anything else regarding the PayPal connection. Have a great day.