Noticed that when someone places are order using paypal checkout, when they return to our checkout page step 1 it's automatically puts in their customer information but no phone number, I believe this was solved in Version 4 can anyone tell me how it's working for them in Version 7?

Thank you.

They are sent back to step 1 only if you have the phone number required in checkout. (Operations >> Settings >> Checkout) PayPal does not send the phone number back to us through their API so the customer must fill this out if required. If you do not have this required, the will be redirected to the second step of checkout to choose their shipping options.