Microsoft 365 features that help users manage their subscriptions, account settings, and billing information.
Hi Soumyajit Sen,
Thanks for posting here.
No, they needn't create a new email id, since the .onmicrosoft.com domain is the default one, and it isn't deleted. Which means you can always use this domain.
Meanwhile, you also can use that new domain name via verifying this domain in office 365, please let admin refer to the steps in the link below:
After verifying that new domain, the admin need add an alias under their account, and set this alias as the primary, and then they can use this new alias to access their Office 365 apps. For detailed information, let admin refer to this article in the link below: https://support.office.com/en-us/article/Add-another-email-address-for-a-user-0b0bd900-68b1-4bf5-808b-5d240a7739f4?ui=en-US&rs=en-US&ad=US
Hope the above information helpful.
Regards,
Rudy