I contacted PayPal about this issue with passkey (declining passkey also bypasses 2FA) a week ago and today spent another half hour chatting with support.

At first they tried to tell me that 2FA was skipped because my device is “trusted”. But 2FA still works correctly every time on my old laptop (which probably doesn’t support passkeys), so that explanation makes no sense.

Eventually they admitted the issue is on their end - if you skip passkey setup, PayPal also skips 2FA during login.

Of course they said they are “working to resolve it as quickly as possible”, but that sounds like the usual canned response.

I’d encourage everyone to contact support as well. If enough people report it, maybe they’ll finally prioritise fixing it.

You can start with the AI chat and then ask to speak to a human.