Did PayPal approve selling bitcoins for PayPal?
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I see coinbase started offering PayPal payments to US users from today: https://blog.coinbase.com/2016/06/22/coinbase-adds-support-for-paypal-and-credit-cards/
Coinbase was not really into bitcoin economy, more like a bitcoin currency exchange. Basically coinbase would accept btc for payment on behalf of merchants, exchange rate it and transfer traditional currency funds to the company. I imagine with paypal it will be the same.
I don't think they still approve or using paypal for bitcoin related transactions but how coinbase manage to add paypal in their methods is quite confusing to me too. ???

Did someone tried this feature from USA ? withdrawing to paypal ?
No they are not accepting this but the fact is that PayPal is even limiting for you if they are knowing this..
as far as i know, paypal didn't disallow any form of transaction about cryptocurrency but they just won't get involved into it if any problem happening,they didn't reccommend the transaction,every refund request will result rejected
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