I got that information from the paypal website. And from simple deduction. If you can pay for stuff, there are people accepting those payments.

If it were banned by paypal in general, you could not pay for it. They do ban certain stuff with clauses that are too broad to be accepted in any court of law in my opinion, but I am not a legal expert. Like "violate any law, statute, ordinance or regulation"  "items that are considered obscene"   "certain sexually oriented materials or services".   The first, well, there are countries were basically everything is illegal. They do not specify wich jurisdiction. And what is obscene is in the eye of the beholder. And what certain materials they mean is not specified. It is all an arbitrary and unnecessary load of BS and pp need to be gone and replaced by a processor that gives the same functionality like the credit cards and banks    that are used behind the scenes. It is shameful to impose your own agendas.

And to expose their hypocrisy  on the same page they  list a bunch of stuff they can approve your account for. Including "any" adult content delivered digitally. That includes real life hardcore porn videos. Your content on the other hand is not even real people. But I cannot tell you what is required to get approval.  But apparantly you thought it is not possible at all,   inferring that people doing those sales are either not caught yet or are so big that they are above the pp tos.  

But do not get your hopes too high. Even though you only create cartoon porn,   you might be too small for them or there might be tax problems or other stuff. I would naivly assume that getting approval for non-real porn is easier.  After all, I am not even sure if they speak of porn, when referring to "adult content".  But adult dvds is  rather telling, because 11 out of 10 search results give porn. So what  else could they talk about with mature audience content. Furthermore, while people obviously watch cartoon porn for similar reasons as the real porn, it is not real porn. This goes so far that  in many sane jurisdictions not even loli is forbidden. Restricted from being watched by minors, of course, but not illegal, as the real deal would be. So why all the fuzz about cartoon porn merchants in the first place. 

Itch could do a lot better. If companies manage to collect payments for real porn and manage to pay out to the creators (talking about camming), it should be possible for porn game indie devs. Similar situation. But they do pay out via other processors that require bigger sums to be payed and take a bigger share - wich itch does not.  So no micro payments for direct payout. And micro here is less than 100 bucks. 

https://www.paypal.com/us/legalhub/acceptableuse-full?locale.x=en_US

Activities Requiring Approval

PayPal requires pre-approval to accept payments for certain services as detailed in the chart below.

What they do ban is stuff like cigarettes and you can only get approval to sell 

Also Itch and Steam must have been approved for this as well, I guess.

I do not understand what you wrote about ccbill and epoch with paypal. I pay my paypal with my credit card. Not with a third party credit card processor. I could also send the money to paypal directly with my bank account. This gets important for currency conversion, because pp is too expensive.