In general, it should tell you whether the domain is registered in another tenant, so the "unknown" error is puzzling. In any case, you can verify whether the domain is in use in any other tenant by using the method outlined here: https://www.michev.info/Blog/Post/3970/find-tenantid-by-domain-name-and-vice-versa-by-leveraging-the-graph-api
If you do get a result from the query, you can try performing a domain takeover: https://learn.microsoft.com/en-us/azure/active-directory/enterprise-users/domains-admin-takeover
Is the primary domain, school.com, federated? If so, you'll have to add the subdomain via PowerShell and the New-MsolFederatedDomain cmdlet instead: https://learn.microsoft.com/en-us/troubleshoot/azure/active-directory/new-msoldomain-cmdle-add-subdomain