You might see this error if your primary alias's name is the same as an existing work or school account in Microsoft 365 or Azure Active directory. To resolve this error, try any of these steps:
Rename your account to something else
Changing the name of your account might fix the issue.
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Sign in to the Your Info page of your Microsoft account.
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Select Manage how you sign in to Microsoft.
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Look under the Account aliases section.
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If you already have a personal email address listed there, you can skip this step.
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If your work or school email address is the only one listed, enter your personal email address or get a new one from Microsoft, and select Add alias.
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If your personal email address does not have (primary alias) listed next to it, select Make primary to set it as your primary alias.
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Select Remove next to your work email address to remove it from your account.
For more information on how to do this, go to Rename your personal account.
Set one of your other aliases as the primary alias
If you have more than one alias, try setting another alias as the primary alias.
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Sign in to the Microsoft account website and enter any additional security information required.
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Select Your info.
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Select Manage how you sign in to Microsoft.
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Select Make primary next to the alias you want as your primary.
For more information on how to do this, go to Manage aliases on your Microsoft account.
Add another alias to your account and make it the primary alias
If you have only one alias, or your other aliases don't work, try adding another alias to your account and making it the primary alias.
Note: You cannot add an alias that is already associated with another Microsoft account. Aliases cannot be used to share information between two Microsoft accounts. Existing @hotmail.com, @live.com, @outlook.com, and @msn.com addresses can't be added as aliases.
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Sign in to the Microsoft account website and enter any additional security information required.
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Select Your info.
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Select Manage how you sign in to Microsoft.
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Select Add email or Add phone number.
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Follow the instructions to set up and verify your new alias. If you chose Add email, you have the option to use an email address that you already have, or you can create a new Outlook.com email address.
For more information on how to do this, go to Manage aliases on your Microsoft account.