In which log file are you looking/reviewing? Is this the standard logs directory with PayPal Standard set to do its normal thing, or where the module is setup to log information and/or send email with the output put to the same logs directory or the store's email account?
Also, while haven't seen in this thread that the correction for using the admin_notification system has been applied (
https://github.com/zencart/zencart/pull/3769/files) it appears that perhaps something like it has been incorporated as refunds from within ZC have been made possible. Perhaps others trying to replicate the issue though will benefit from that additional information.
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