Microsoft Entra Entitlement Management: External directory shows "The directory is already selected" and cannot proceed

We are experiencing an issue with Microsoft Entra Entitlement Management.

When attempting to add an external directory (Connected organization),

the portal displays the message:

"The directory is already selected".

This occurs even though:

• All Access Packages have been deleted
• All Access Package Catalogs have been deleted
• There are no remaining Cross-tenant access settings

If we proceed without selecting the directory, the process fails with an error.

As a result, we are unable to complete the configuration.

This happens even for domains that should be newly added.

We are not trying to delete the Microsoft Entra tenant itself.

Could you please advise whether this is a known limitation or behavior,

or if there is any way to clean up stale backend references

for external directories in Entitlement Management?