If either the opponent or the permanent you control becomes an illegal target by the time Iroh's second ability resolves, the ability does nothing and you cannot choose to have the opponent gain control of the permanent
Mastering Pokmon TCG: A Starter Guide to Graded Pokemon Cards Investing MoneyMade Team May 10, 2023 Last updated Investing in graded Pokmon cards
#5: Best Colorless Cards Invent Superiority: Blinkmoth Urn, Nevinyrral's Disk, Skullclamp, Shimmer Myr, Armory Automaton, Solemn Simulacrum, Soul of New Phyrexia, Commander's Sphere, Sol Ring
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It also allows some lifelink shenanigans to happen as well, giving Black some added reach for those triggers
Usually, a Pokmon can only cause a paralysis by flipping coins, using GX attacks (such as Raichu-GX (Shining Legends #29)), or using V-Star Powers (such as Drapion V-Star (Lost Origin #119))