The most plausible explanation for how the variety with stand-up ears (Papillons) first appeared is:
A random mutation during meiosis could have created the first puppies with stand-up ears.
This is because genetic mutations can occur naturally and may lead to new traits appearing in a population. If a random mutation caused a change in the genes responsible for ear structure, it could result in the first Papillon puppies having stand-up ears, even if they were bred from Phalenes at the time. The other options are less likely explanations for the emergence of this trait.