Not to my knowledge. You can only withdraw to have it transferred to a bank. PayPal does not hold a banking license.
This is not the reason. Anti money laundering concerns would only kick in if IB allowed withdrawal to a bank account not in the IB account holders name or to a bank in a jurisdiction that is on the US Black list
PayPal lets you fund your account with money from a bank account. So if you can transfer from IB to your bank account and register the bank account with PayPal, you can then use PayPal to take money from your bank account at no cost to you (takes 3-5 business days).
you slept in class. You can't withdraw money from IB to have it sent to a nonbank institution. You can transfer assets other than cash to a different broker though. But certainly not to Paypal. Hence, here the issue on money laundering is a moot point.