Microsoft 365 features that help users manage their subscriptions, account settings, and billing information.
Hello Irfan,
May I confirm if your organization is purely Exchange Online? Generally, this error occurs because an object has the same proxy address already exists in Exchange Online. Therefore, you can try to change this user’s proxy address or remove the conflict address.
For more information about how to do it, here for your reference: "Proxy address is already being used" error message in Exchange Online
I hope this can help. If this is not your scenario, please feel free to let me know.
Best Regards,
Sylvie