The symptoms match a compromised Microsoft account where the sign-in alias or security information was changed.
Recommended next steps:
- Scan the PC for malware before changing anything else
- Open Windows Security.
- Go to Virus & threat protection.
- Select Scan options > Full scan > Scan now.
- This is important before any password reset or recovery attempt.
- Use the Microsoft sign-in helper / recovery flow immediately
- If the original account was hacked, Microsoft directs recovery through the sign-in helper and account recovery process.
- If the original Gmail address now says the account does not exist, that can happen when account details were changed during compromise.
- If access is regained, change the password right away
- After malware scanning, sign in and change the password, or reset it if sign-in fails.
- Use a strong password.
- Review account settings for attacker changes
- Check for unexpected changes in:
- connected accounts
- forwarding
- automatic replies
- These are specifically called out as settings that may be reset or altered after an account compromise.
- Check for unexpected changes in:
- If verification codes are not arriving, avoid repeated requests
- Excessive or repetitive code requests can trigger a temporary block on code delivery.
- Temporary blocks can also happen because of unusual activity.
- If the account is temporarily blocked, reset the password to unblock it
- Outlook.com accounts can be temporarily blocked after unusual sign-in activity, and the documented recovery step is to reset the password.
- If security info was changed and access to all verification methods is lost
- During sign-in, at Verify your identity, select I don't have any of these and follow the prompts to replace security info.
- After security info is replaced, there is a 30-day wait before sign-in is allowed.
- If the old security info becomes available during that period, using it cancels the update.
- Support limitations
- Microsoft support agents are not allowed to send password reset links or access and change account details.
- If self-help does not restore access, use the official support entry points listed on the Microsoft support pages for sign-in and account issues.
About the new account created with the same Gmail address: the context indicates aliases belong to a single Microsoft account, and creating a new account after a compromise can result in signing into a different account than the original one. That would explain why Minecraft and other prior purchases are not present on the newly created account.
The trusted Microsoft account email domain for account notifications is @accountprotection.microsoft.com. If unexpected security emails were received, that domain can be checked to confirm whether the message was genuinely from Microsoft.
- How to recover a hacked or compromised Microsoft account | Microsoft Support
- Troubleshoot Microsoft verification code issues | Microsoft Support
- Unblock my Outlook.com account | Microsoft Support
- Change the email address for your Microsoft account | Microsoft Support
- Can I trust email from the Microsoft account team? | Microsoft Support
- How to recover a hacked or compromised Microsoft account | Microsoft Support