Can't create a new tenant directory or sign up for a new Entra license.

I am a long term azure customer who is trying to create a new azure tenant directory for a new project, but my very old account (pre Entra) seems to now be a broken state, where it keeps blocking me from every path that I take.

I already created the subscription and resource group within my default tenant, but when I try to create the new tenant directory, I get this error: “Base-tenant xxxxxxx does not have a paid license. Hence add-on tenant creation is not allowed on this base-tenant.”

I asked the azure copilot assistant, and it recommended this: To resolve this issue, ensure that:

1. The base tenant has a paid Microsoft Entra P1/P2 license. (I'm unable to sign-up for a paid license with my existing user account)
2. Tenant creation is not disabled in the User settings page. ("Restrict non-admin users from creating tenants" is set to false/off)
3. Your account has at least the Tenant Creator role. (Successfully added)

So I then tried signing up for a Microsoft Entra License, even though that wasn't required previously for me to create a new tenant, and I am already a Microsoft 365 subscriber.

When I tried to access the Entra license page, it says this: 

{"sessionId":"xxxxxxxxx","subscriptionId":"","resourceGroup":"","errorCode":"401","resourceName":"","details":"You need a Microsoft Entra ID Premium license to use this feature."}

And the Entra "Licenses | All products" page saying this (no existing licenses shown there):
https://entra.microsoft.com/#view/Microsoft_AAD_IAM/LicensesMenuBlade/~/Products
"Adding, removing, and reprocessing licensing assignments is only available within the M365 Admin Center. Go to M365 Admin Center"

So from there when I try to go to the M365 Admin Center, it says "Switch to an account that has permission", where I can't access that admin console. That screen shows my other non-default tenant in the top right corner, but I can't seem to access that page with my default tenant, event after clearing my cookies or using an incognito browser (a recommendation I read elsewhere).

I'm the only user account in both the default and non-default tenants, and I already have global administration permissions assigned to my account, so not sure why I'd be blocked there.

I have created a couple new tenant directories within azure before, and it hasn’t given me this many problems. It seems like my account is now stuck in some weird broken state, perhaps related to the Entra changes?

I also tried creating a new subscription to be assigned to a new tenant from my other non-default tenant, but that was also blocked, with the message "To see eligible offers, please switch to the [myemail].onmicrosoft.com directory."

Under "All billing subscriptions", both of my subscriptions are set to the Usage based Microsoft Azure Plan.

I've been struggling with this for hours, trying to find a work around, but I don't see a way to get unblocked. Please help.