Outlook 365 2 Microsoft Accounts?


Outlook version
Outlook 365 64 bit
Email Account
Outlook.com (as MS Exchange)
I need some advice on how to proceed. I am an home user on a Windows 10 PC. I am self-taught so please forgive me if I use any of the terminology incorrectly.
I have a Microsoft 365 Family subscription. I have had a Microsoft account for many years tied to the address - colclasuret@verizon.net. This is also the login to Windows on my PC. Some months ago, I added a second email to my Outlook desktop app - colclasuret@outlook.com. I followed the instructions for adding an email to the Outlook app. My intent was to get better functionality with the Outlook mobile app on my Android phone and to get an "untethered" email address in case of any future moves away from Verizon internet service. My plan is to transition to the outlook.com address as my primary email. About a week ago, I discovered that one of my main financial accounts uses a login system that goes through my Microsoft account. In order to update my email with them I must also update the login for my Microsoft account. A few days ago I attempted to follow the instructions to change the email address of my single Microsoft account. However, I received a dialog advising that colclasuret@outlook.com was already taken. Further investigation revealed that, unbeknownst to me, I had a second Microsoft account tied to - colclasuret@outlook.com.
I contacted Microsoft support and was informed that the addition of the new email to my Outlook app had automatically created a new Microsoft account. I should have created an "alias" for my existing Microsoft account. Also, that Microsoft TOS does not allow the merging of 2 Microsoft accounts. I also learned that there is no subscription required to maintain a basic Microsoft account. The support tech's suggestion was to cancel my existing Microsoft subscription under - colclasuret@verizon.net - and start a new one under the new email. When I asked about maintaining my data, he advised that it could be done, but he would refer me to the Office team to manage that. I haven't spoken to them yet.
Has anybody else dealt with a similar situation? Is this the best solution? Is there any downside to keeping the 2 Microsoft accounts? I guess I don't have a good understanding about the difference between subcriptions and Microsoft accounts. My original goal was to rename my original Microsoft account, with all of my existing data on OneDrive, to my new main email address - colclasuret@outlook.com. Is this still my best option?
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