I've had "Direct to you" enabled for years and last month I've published a new game and I do receive notifications from itchio that someone bought it but I don't receive this payment in my PayPal account and it's been already almost a month like that.
I’m not a representative of itch.io or someone who is selling though them, but I vaguely remember reading there being some kind of threshold that has to be reached (I’d assume in order to keep transaction costs down to a reasonable amount). Is it possible that said threshold has not been reached, yet?