I used the PayPal QR/regular bar code option instore recently as I don't use a mobile wallet that works with PPKEY and there was the CVS promo.
This is my first PayPal transaction where PayPal was not in the merchant prefix. It also appears Chase added PayPal as a transaction type like contactless or CNP which is interesting.
Anyway, it still got 5x for Freedom. There are not many instore merchants and the auth process is slow so unless there is a promo, I am unsure I would go through the trouble.