The most likely causes in this scenario are:
- The sign-in alias for the Microsoft account changed, so the email address no longer works as a sign-in name.
- The account was compromised and the sign-in details were changed.
- The address is being recognized as reserved or attached somewhere, even though it is not currently working as a usable sign-in alias.
Use this recovery path:
- Go to the Microsoft account sign-in page and enter the exact email address.
- If a password prompt appears, the email is a Microsoft account.
- If the message says “We couldn't find an account with that username” or “That Microsoft account doesn't exist,” first verify the spelling and domain carefully.
- Run the Sign-in Helper tool.
- Microsoft states that most sign-in issues can be identified there.
- If the account is detected, the tool provides the next steps.
- If the account is not recognized and standard reset options fail, use the Microsoft account recovery form.
- Use a working email address that can receive updates about the request.
- Complete the form from a device and location previously used to sign in to that account if possible.
- Microsoft reviews the answers and responds within 24 hours.
- If two-step verification was turned on and none of the alternate verification methods are accessible, there is no supported recovery path through support agents.
- Support agents cannot send password reset links or change account details.
- Since there is a Minecraft purchase receipt, keep that proof of purchase available when contacting support through the public Contact Microsoft Support flow.
- For technical support, enter the problem, select Get Help, and then Contact Support.
- Support cannot directly reset the account, but this is the supported escalation path for technical review.
Important:
- Do not create a new Microsoft account with that email unless Microsoft confirms the original account is gone.
- If the account was compromised and the alias was changed, the original email can stop working for sign-in even though the account still exists.
References:
- I can't sign in to my Microsoft account
- How to check if your email address is a Microsoft account
- Help with the Microsoft account recovery form
- How to get a Microsoft account recovery code
- Account apperantly doesnt exist but when i try to make a new one with the same email it does all of a sudden - Microsoft Q&A
- Can't login - Microsoft Q&A
- Email is accidentally associated with two accounts - Microsoft Q&A