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Posting a solution I stumbled upon, might might help a few people.
If you have the paypal app on your phone you might be able to login without the PSD2 phone verification. I was in the same boat as everyone else here seems to have been in. I was trying to login to my PayPal account on my desktop, but kept getting stuck in the PSD2 verification screen as the number I had listed was my old landline number which was cancelled many years ago. However I had the app and had previously enabled the Face ID login option, so when I opened the app it logged me in through that verification. I could then go to my settings on the mobile app and change my phone number to my current one, and are now able to login on desktop as well.
This hopefully helps someone who is in the same situation I was in, try going through the app to change your phone number if you can.
Just want to say that this workaround did the trick for me! I was able to use the PayPal app to login - all I had to do was go through reCaptcha and then I was in, and able to update my mobile phone number and finally log back in via the browser having had a verification code sent to my updated mobile number. Nice one!