Papyo is an unreleased Pokémon that was created as an example of the games' mechanics, its typing is currently unknown.
Not too much information is known about it, but it was listed as being Pokémon #211, which officially is occupied by Qwilfish.
It was featured in a Game Freak book showing the origins of Pokémon, back in the day when the project was called Capsule Monsters and in that book we can see Papyo along with other unreleased and early designs such as Buhi, Godzillante, Gorillaimo, Rhydon, Geodude, Gengar, Nidorino, Dragon4 and an unknown round Pokémon.
Papyo seems to be a really basic bug with few details. It has six legs, and a big head.
It seems to be based in a bug, or it might be based on a crab-like creature.
Its face has a really wide mouth and on the top of the head, two protuding eyes.
The smog emanating from the spouts on Papyo's back indicate that this may have been a Bug and Poison-type monster.
However, based on its looks, Papyo might be a Bug type, or if it is indeed based on a sea creature, it could be part Water. Unfortunately, its plain design does not give us any further hints about this Pokémon's typing or moves.
It seems unlikely that Papyo was redesigned to become an official Pokémon.