I just came across the same issue, contacted chat support and they told me it was because I didn't add a bank or eligible debit card to my account. I told them I didn't have a bank account so they suggested applying for Paypal Credit, which I'm not doing cause I can't afford it. I don't know if this applies to you, but if it does, I hope this information was helpful. I've read on other discussions people were told it was because they didn't have a Paypal Cash Plus membership, but they'd still get that error even with it. Even going back as far as a year ago this has happened to other folks with no solution. It sucks that they don't tell you these things from the start. Should not have to go through all this trouble just to find out 'verification' means having a bank account or debit card linked.
