Trying to add a new user to the 365 portal returned the error that the desired email address was already in use, but helpfully didn’t tell you which account/mailbox it was in use with. To identify the existing mailbox that is using the address in question, launch PowerShell then run Connect-ExchangeOnline command, logging in with admin credentials, then run the following command:
get-mailbox | where {$_.EmailAddresses -match “<email address>”} | ft Name, RecipientType, EmailAddresses
[NOTE: Replace <email address> with the address you want to use]
The returned result should allow you to find the existing mailbox utilising the address and then you can decide how to proceed!