Buyers can still pay using PayPal, but eBay no longer uses PayPal to pay sellers.
If you made purchases using PayPal and you are being refunded, the refund payment will return to the original payment source just as before.
eBay and PayPal split in 2015 and negotiated a five year deal to separate the payment processing. Most current eBay sellers were required to link a checking account to Adyen managed payments by last year to continue selling and receiving payments from eBay.
If you search the community pages carefully, you might be able to find a thread or two where users discuss their feelings about this.
Here is a sample thread from 2020:
https://community.ebay.com/t5/Payments/eBay-not-using-PayPal-anymore/m-p/31339447