
Hi,
When you create an Outlook.com account, you already have an existing MS account with it, which is why you have that error adding your existing Outlook.com account. You can set up a new Outlook.com account on your current MS account.
Go to the link below and click Add email. Then fill out the "Create a new email address and add it as a username" box and click Add username. Follow the prompt to create a new Outlook account for your MS account.
https://account.live.com/names/manage
If you require further assistance, please don't hesitate to let me know.
Stay Safe!