Nice IC, if I had known the
PCA9507 before I would have used it instead of my current solution.
I'm using an Adafruit
ISO1540 to isolate my Pi's 3.3V against the I2C's 5V. Currently that's slightly stupid, because both are fed by the same 5V DC/DC converter :grinning-face-with-sweat:
Afterwards I hook up my SDA/SCL lines to a USB socket and latch an Adafruit
LTC4311 I2C extender onto it. It basically does what your
PCA9507 does a swell, it is a dynamic pull-up which shorts the lines to VCC, exactly what the
PCA9507 has on the A-side. Everything is connected using header pins and header cables, as you can see in my
build thread.
So the PCA9507 should be fine, if you have a good connection and cables. Personally I'm using
shielded USB-A cables. Not the cheapest option, but it seems to work. I can get a seemingly stable I2C connection to my SCD30 over 1m distance.
I would suggest to check shielded cables, like a Ethernet cable and to try placing the PCA9507's A-side onto the side of the cable leading to the sensor.