I think that most services that offer crypto cards can be in this category too, since those cards can be linked to PayPal.
Although, as already mentioned, PayPal fees tend to be unreasonably high, so, OP, you better make sure if you indeed need PayPal.
I was able to transfer my fiat balance from Coinbase to Paypal completely free of charge, and then from Paypal to my bank also free of charge, so I definitely don't agree with you. Sadly however my Coinbase account is closed so this won't work for me anymore.
However, I still don't have an answer to my question: which exchanges other than crypto do offer free Paypal withdrawals?
Nobody knows this?