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well, for me the problem has yet not been fixed.
Fred told me it might be the problem with AndroidPay Try to query with them.
I asked AndroidPay Support they responded with
Thank you for writing us back.
I have checked with our specialist. To assist further on this, I request to contact PayPal representative and ask for all the proofs staying that there is no issue from PayPal's end example email from the supervisor confirming and clarifying that there are no issue on their end.
You can take the screenshot of it and reply to this email.
I apologize for the inconvenience that this delay may have caused you.
If you have any more questions about Android Pay, let me know.
After this I again tried PayPal support.
The sweet answer was, account has been locked we should try after 48 hours.
Called PayPal support after 48 Hrs, Finally after 3 hops i landed in correct department ("Android Pay" PayPal setup Support)
David told me to get a PayPal cash debit card which is free and arrives with in 7 business days.
I am hoping that it will work after i get my PayPal debit card.
My Last divine question now is
"Can't we setup AndroidPay with PayPal without PayPal debit card, I already have my bank's debit card and is linked to Paypal and the status is confirmed.