Account seems to have deleted itself

The original Microsoft account cannot be recreated or reused once it has been deleted or its alias removed, and a new account with the same email address will not restore access to the old data, purchases, or Xbox entitlements.

Key points from the described behavior and the documented rules:

1. When a Microsoft account (or its primary alias) is gone
   • If the username “stopped working” and sign-in reports that no account exists, this matches the documented case where the username is no longer recognized.
   • If the account was closed or deleted and the grace period (30 or 60 days) has passed, it cannot be reopened.
   • If the account has been inactive for more than two years, it may have been automatically deleted and cannot be reopened.
2. Email addresses cannot be reused for a new Microsoft account
   • Addresses used for Microsoft accounts cannot be reused, even if the account was closed a long time ago.
   • Creating a “new” Microsoft account with the same email address does not bring back the old account’s content, licenses, or Xbox data. It is a different account with no link to the previous one.
3. If the username and password suddenly stopped working
   • The supported path is to use the recovery flow described in “My username and password have stopped working” and “Recover your account”:
     1. Go to the Recover your account page and enter the email, phone, or Skype name.
     2. Choose where to receive a security code.
     3. Verify identity with the code.
     4. Set a new password.
   • If the message “We couldn’t find an account with that username” continues to appear, the guidance is to contact support using the provided “Contact support” option and explain that the username has stopped working.
4. If the account truly no longer exists
   • If the account was closed and the grace period has expired, or if it was deleted due to inactivity, it cannot be reopened.
   • If an alias (for example, a Hotmail/Outlook address) was removed from a Microsoft account, that alias is permanently deleted and cannot be associated with any Microsoft account again.
5. About the current 0x80004005 error when signing into Xbox/Store
   • Because the old account cannot be restored and the email address cannot be reused to recreate the original account, the new account will not have the old Xbox licenses or game entitlements.
   • The documented path in this situation is to:
     • Confirm whether the username and password are valid using the recovery steps.
     • If the username is not recognized and recovery fails, treat the old account as unrecoverable and continue using a different Microsoft account for Windows and Xbox.

In summary, if the original account is no longer recognized and cannot be recovered via the official recovery and support paths, it cannot be brought back, and creating a new account with the same email will not restore previous content or resolve the Xbox sign-in issue tied to the old identity.

References:

• I can't sign in to my Microsoft account
• My username and password have stopped working
• Reopen your Microsoft account
• How to create a new Microsoft account
• Check products or services where you used your Microsoft account
• my microsoft account has been compromised - Microsoft Q&A
• Deleted hotmail email address from account - can I get it back? - Microsoft Q&A