We understand your pain, and it’s not a problem specific to QuickFile, the account re-balancing would need to be done on any accounting software due to the absence of any exchange rate supplied in the PayPal feed.
It’s actually intended to realign the QF balance with the PayPal balance. With the transactions importing from PayPal on an XE.com rate, your balance on QF will gradually become overstated. The journal reduces the balance in the QF account to match what PayPal are reporting (don’t forget credits and debits are reversed for bank accounts, hence the journal example provided may seem like it’s the wrong way around).
Another option that may work is to disable the PayPal feed and instead report your PayPal sales in bulk (e.g. weekly or monthly). That way you can allocate all the income to a single “generic sales” invoice already converted to GBP. This is far simpler from an accounting perspective but wouldn’t work where you’re using QuickFile to issue individual invoices to clients.