UK PayPal advice?

Welp I got physical PayPal card and delivered in UK about mid March, I got $11 in PayPal in USD but when it comes to pay the April monthly challenge, PayPal were trying to pay from using my bank not PayPal??

I have set PayPal as primary and already set in USD it failed to purchase renewal due to insufficient amount (got 2 bank accounts) and tried to sort it out. Went on Atlas Earth and PayPal, on AE I tried to retry the payment but keeps saying insufficient funds, on PayPal I have already activated the card when it arrived and set it as primary. From what I read on PayPal it'll pay PayPal first then bank to cover the missing fund but it just goes straight to bank instead 🤔

Have I set something wrong or do I actually have to leave it as GBP and exchange USD to GBP every time I redeem the rent to PayPal??