Thanks for sharing your question. My name is Olivia and I'm part of the Shopify Community team.
I'd be happy to help answer your question today. From your screenshot, I can see that you have already enabled dynamic checkout on your website. As you are likely aware, the dynamic checkout button will replace the unbranded "buy it now" option with one of the following if they are available on your website:
Which accelerated payment option is displayed on your product pages actually depends on a number of different factors. These include:
Since this is a customized experience for each customer, the PayPal button will only appear if specific criteria is met. With that being said, you can certainly test out if it is working as expected by adding ?shopify-debug=true&show=PayPal to the end of any one of your product page URLs.
For example, the URL to test the dynamic checkout button for PayPal might look something like this:
Please feel free to share your website URL with me and I'm more than happy to test it out for you.