Sending, receiving, and organizing email in Outlook.com
Thank you for the information.
Unfortunately, you will not be able to create a new Microsoft account using the same email address because it has a Microsoft domain "Hotmail".
This is because you cannot reuse an email address with a Microsoft domain if the Hotmail account associated with it has been removed or deleted due to inactivity.
As previously mentioned, email addresses with Microsoft domains, such as Outlook, Hotmail, Live, or MSN, cannot be reused for a Microsoft account once they have been removed or deleted. This is stated in the following article, specifically in the "Remove an email address" section:
https://support.microsoft.com/Outlook/add-or-remove-an-email-alias-in-outlook-com
Thank you for your understanding.
Best regards,
Darhyl