Hi Brian,
Thank you for sharing your question. I understand about changing the email for your Microsoft 365 sub. I get that it's key to get your stuff connected to the right address, and I appreciate you trying to fix it already.
The email already taken message pops up 'cause your Outlook.com address is already tied to another Microsoft account. Microsoft doesn't let you merge accounts or reuse an email that's already in use. This keeps things secure.
To fix this, add an alias to your current Microsoft account and set it as your main login. Here's how
Go to Manage how you sign in to Microsoft and log in. Under Account aliases, hit Add an alias. You can make a new Outlook.com address or add an existing email that's not on another Microsoft account. After adding it, click Make primary next to the alias you want. Heads up, you can't add existing Hotmail, Live, Outlook.com, and MSN addresses as aliases if they're linked to another Microsoft account.
I hope this helps.
Best Regards,
Noel