I think there’s another article on FR where PayPal said that’s not true and not their policy.
I think the deal is that it was going to be PayPal’s policy, but it got leaked early by mistake, causing the rukus. When they saw the reaction they disavowed it.
You can’t possibly believe that PP got hacked, and someone else wrote and included those words. PP said that language was not supposed to be included. PP wrote it alright, but delivered it too soon.