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After clicking a PayPal button loaded with the paypal-js SDK, a login overlay appeared but at the same time a small empty popup window opened on top of it, hiding the login form and breaking checkout. It started suddenly across all shops on the same day. One reporter found the page was inside an iframe and noticed a COOP error in the console.
The root cause is the Cross-Origin-Opener-Policy response header: if your site sends same-origin, the PayPal SDK detects it cant open popups and falls back to an iframe overlay, but the popup opens anyway, empty, on top of the overlay. Two workarounds were verified by multiple reporters. (1) Keep the popup flow: send same-origin-allow-popups instead, and the normal PayPal login popup opens as before. (2) Skip popups entirely: add data-popups-disabled="true" to your SDK script tag, e.g. <script src="https://www.paypal.com/sdk/js?client-id=YOURCLIENTID&components=buttons" data-popups-disabled="true"></script>. Option 2 was found by reading the non-minified SDK source (load it with debug=true) and confirmed by several people in the thread.
Source: https://github.com/paypal/paypal-js/issues/534
Source: https://github.com/paypal/paypal-js/issues/534