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Here's the statement from PayPal Credit terms:
"We have the right to decline Cash Advance transactions for any reason permitted by applicable law, including if fraudulent or high risk behavior is suspected."
Also, in the PayPal User Agreement cash advances to yourself from credit instruments are not permitted.
I'm sorry for any confusion. In the UK, PayPal Credit can be used for purchases only.
I hope this helps clarify!
If someone on eBay does not accept PayPal credit, buy a PayPal electronic gift card on eBay (or eBay gift card whatever it is I forget), wait for it to show in your email in 10-20 minutes, then buy what you were trying to buy with that.