Installed MQTT binding not displaying in Paper UI nor is binding working

Yes. It’s a 1.x binding, those don’t show up. Only 2.x bindings.

Never used Tasmota, but I would send the ON/OFF command to the switch:

POWER:ON:ON and POWER:OFF:OFF

without using a transformation:
Item itemName { mqtt="<direction>[<broker>:<topic>:<type>:<trigger>:<transformation>]" }

Also read this tutorial, very helpful:

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