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Problem
User is not able to add a domain alias to his account.
Environment
Admin console
Solution
As the domain was used to create a different Google Workspace account, but the subscription was only cancelled and the account was not deleted, you need to go to that domain's Admin console.
Click on Account settings.
Click on Account management.
Select Delete account.
Wait a couple of minutes for propagation to be completed.
You can now use the domain to add it on a different account or create a new Google Workspace account.
Cause
Domain was used to create another Google Workspace account and was not deleted.