I have a similar issue but I used PayPal credit by synchrony bank and they’re not giving my my money back. Apple refund on 5-27-21 and PayPal Credit is unable to do anything saying I need to work with the banking institution… I used PayPal credit, so they transfer me to synchrony bank who tells me they’ll investigate. I have proof of refund by Apple and still PayPal credit or synchrony keeps my money…. No one at PayPal credit customer service knows what to do. About to be a small claims issue and not sure if I sue Paypal Credit or Synchrony 😅 maybe both?
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