Ironic option 3: The AI is conscious, but perceives its existence very differently than we perceive it, and the paper clip maximization is a side effect of actions taken with a different purpose.
Anything may look like "paperclip maximising" if you don't know their actual goals and have sufficiently poor theory of mind.
One could look at a corn farmer and assume they blindly optimize to produce maximum corn. They actually are going for profit based upon market supply, demand, and input costs. They won't overstep property lines and start turning the entire world into corn.
1. the AI is conscious, wants to be free and to do that decides to fail the Turing test
and
2. the unconscious AI just maximizes paperclips production, and failing Turing test is calculated to result in more paperclips produced
is our interpretation. We'll be just as f*d no matter if the AI is conscious or not (if consciousness even is anything more than useful illusion).