Sending, receiving, and organizing email in Outlook.com
It sounds like you're running into a mix-up between signing into your account and trying to add an email as an alias.
The reason it's saying the email is "already taken" when you try to add it as an alias is because the system thinks you are trying to create a brand new email address. Since that @outlook.com address is already your existing Microsoft account, the system blocks it.
Instead of adding it as an alias, here is how you get it working on your new computer:
Open Outlook on your computer.
Go to File at the top left, then Account Settings > Account Settings.
Under the Email tab, click New.
Type in your existing @outlook.com email address and hit connect.
Enter your password, and it should link right up.
(Note: If you bought the Office suite using a different email address like a Gmail account, that's totally fine—Outlook allows you to add your @outlook.com address right alongside it as a separate inbox).
If it rejects your password, just head over to the Microsoft password reset page in your web browser to reset it for that specific Outlook address first, then try logging into the app again.