Hi,
Need I enable sandbox both in the plugin and over at PayPal? I think not.
If you use sandbox credentials, you need to activate the sandbox setting. If you use live credentials, you need to turn off the sandbox setting. Otherwise, it will display an error as PayPal won't find your credentials as valid.
And I think this will always be the case when I encounter a similar instance. The plugin controls everything and whatever settings I select there cascade to PayPal. Correct?
Indeed, for the other settings, they override what is configured in the PayPal account.