Custom Domain Verification Issue

I'm experiencing an issue verifying my custom domain in Azure AD.

SITUATION: -

• Domain: companydomain.com
• Azure Tenant: Default Directory (*@gmail.com)
• Issue: Verification keeps failing despite DNS record being correct

WHAT I'VE DONE:

• Added DNS TXT record to domain registrar (correctly configured)
• Verified DNS record exists in global DNS lookup
• Flushed local DNS cache
• Tried verification multiple times from different browsers
• Also attempted MX record alternative verification

CURRENT STATUS:

• DNS lookup confirms: TXT record is registered and globally propagated
• Azure verification: Still shows as "unverified" and rejects verification

QUESTIONS:

1. Is companydomain.com already registered/verified in any other Azure tenant?
2. If yes, how can I resolve this conflict?
3. If no, why is verification failing when DNS record is correct? I own the domain registrar account and can provide proof of ownership if needed.

Please advise on next steps.