Thank you for posting your query on Microsoft Q&A, from above description I could understand that you are getting error "A account with the same name exists in Active Directory. Reusing the account was blocked by security policy." when trying to domain join a VM onto Microsoft Entra Managed Domain services.
Please do correct me if this is not the issue by responding in the comments section.
This error is talking about reusing the computer account and not the user account, as the computer account might have same name with previously joined servers.
This could be because of a known AD issue with KB5020276—Netjoin: Domain join hardening changes
Kindly perform the following actions on the Entra Domain services Management VM:
Configure the new allow list policy using the Group Policy on a domain controller and remove any legacy client-side workarounds. Then, do the following:
- You must install the September 12, 2023 or later updates on all member computers and domain controllers.
- In a new or existing group policy that applies to all domain controllers, configure the settings in the steps below.
- Under Computer Configuration\Policies\Windows Settings\Security Settings\Local Policies\Security Options, double-click Domain controller: Allow computer account re-use during domain join.
- Select Define this policy setting and <Edit Security…>.
- Use the object picker to add users or groups of trusted computer account creators and owners to the Allow permission. (As a best practice, we highly recommend that you use groups for permissions.) Do not add the user account that performs the domain join.
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Thanks, Akshay Kaushik