For anyone who has this issue, log out of the merchant account and try checking out as a guest, select the PayPal payment option and allow it to redirect you to the PayPal site where you can log back in or be auto-logged in. The option should then repopulate. From my experience, the site glitches or the cache glitches and the only way to reset your PayPal payment options is to log in as a guest initially and then proceed. I hope this helps!!
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