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I appreciate the efforts you've made to resolve this. I can add info about the ongoing investigation regarding the problem with PayPal transactions and error 185.
We're currently investigating the issue of being unable to connect PayPal transactions to QuickBooks Online (QBO) and receiving error 185. We don't have an exact timeframe for when this will resolved. However, our investigation team is working hard to fix this issue and receive email updates when available.
Although you've already contacted our support team, feel free to contact them again for updates on the ongoing investigation if you want to.
In the meantime, I'd recommend manually uploading bank transactions as a workaround.
Moreover, you can utilize this article to learn how to create bank rules so that transactions from your bank will be automatically categorised: Set up bank rules to categorise online banking transactions in QBO.
You can return to this thread for follow-up questions or concerns with connecting PayPal transactions and error 185. Take care.