The Clue’s reply was in error. Walmart Debit cards are branded MasterCard or Visa. Paypal will accept them as credit card (or at least PayPal does this for other prepaid debit cards that are branded either MasterCard or Visa.)
For ex, PayPal will treat a prepaid debit card from Netspend (who markets both MC and V cards) the same as a credit card.
Get a MasterCard or Visa branded debit card from Walmart. Once you have received the permanent, reloadable card in the mail, log into Paypal, and add the debit card as a new credit card. Paypal will treat it just like a credit card.
Paypal always defaults to charging a bank account first, if your Paypal account is linked to a bank account. So if you wish to pay with any debit card, you have to manually change the payment source for EVERY payment, EVERY time. This is the way Paypal works, they won’t change it, so don’t ask (Bank payments cost them less). You can ALWAYS set the source of funds before you finalize a payment, you just have to do it every time.
As far as being able to withdraw $ from Paypal onto a Walmart debit card - I don’t know if that can be done…. but Paypal will send you a Paypal-branded Visa or MasterCard debit card, that you can use to spend $ already in your Paypal account, just like you use your Walmart debit card or your bank debit card.
(With a prepaid debit card, like the ones from Walmart, Netspend, and Paypal, you do not currently risk overdraft fees. If these companies start charging overdraft fees, everyone will abandon their products.)