During my initial testing, I couldn't make the "Pause pagination transition on mouse hover" option work, even on the page where the view was originally created.
Can you please confirm if the pause on mouse hover option is working for you, on the page where the view is created and not just when it is placed within an archive?
Yes, confirmed. The "Pause pagination transition on mouse hover" feature does not work on the page where the view was created or on other pages(including non-archive) where the view has been inserted. 🙁