Not letting me make a live account

You need to download the account you made onto the console - https://support.xbox.com/en-US/my-account/manage-gamertag-and-profile/add-remove-profile-xbox-360

It wont let me make the change. It says that the account already has a live account (free account)

That could be a possibility, I think the next step would be chat with a Microsoft agent and ask them to look further on your account.
In case there's an issue with it

Here's in the forums is not possible to do it due to as its public, no one can access / view / modify information

Yeah, I tried signing in that way as well, but it wouldn't let me. It states "An unexpected error occurred. Please try again later."

I've had this issue for quite some time.

Hi there Shenna_777.

I am Lumie and I would love to assist you today.

I am so sorry you are having issues with your Minecraft account.

It sounds like you're encountering a common issue that many users face when trying to create a new account or log in to Minecraft, especially since the game now requires a Microsoft account. Here are some possible reasons why you're experiencing this problem and steps you can take to resolve it:

Reasons for the Issue
Existing Microsoft Account Issues:

If you already have a Microsoft account and there’s an issue with it, such as a security problem or an incomplete profile, Minecraft will prompt you to resolve these issues at account.live.com.

Incomplete Microsoft Account Setup:

Sometimes, the account setup might be incomplete or there might be pending actions required to fully activate your Microsoft account. This could be confirming your email address, adding a phone number, or agreeing to updated terms of service.

Security and Verification Problems:

Microsoft may have flagged your account for unusual activity or require additional verification steps. This can prevent you from signing in to Minecraft until the issues are resolved.

Password or Account Recovery Needed:

If you've forgotten your password or your account has been locked for security reasons, you will need to recover or reset your account by following the instructions on the Microsoft account recovery page.

Profile or Billing Information Missing:

If your Microsoft account is missing important details like billing information or a complete profile, you may need to add this information before you can create or access a Minecraft account.

Browser Issues or Cache Problems:

Sometimes, browser-related issues such as cache problems, cookies, or outdated browser versions can prevent you from accessing the account creation page properly.
Steps to Resolve the Issue

Visit the Microsoft Account Page:

Go to https://account.live.com and sign in with your Microsoft account credentials. Follow any prompts to update your profile, verify your information, or complete your account setup.

Verify Your Account:

Check your email for any verification links or security notifications from Microsoft. Complete any required verification steps, such as entering a security code sent to your phone or email.

Reset Your Password:

If you suspect a password issue, use the Forgot Password option on the Microsoft account page to reset your password. Make sure to choose a strong, new password that you haven’t used before.

Update Security Information:

Ensure that your security information (email, phone number) is up to date. This is crucial for account recovery and verification purposes.

Clear Browser Cache and Cookies:

Clear your browser cache and cookies or try using a different browser. This can help resolve any temporary issues related to browser settings.

Check for Account Restrictions:

Ensure there are no restrictions or holds on your Microsoft account, which could be due to suspicious activity or violations of Microsoft’s terms of service.

I hope this helps. -Lumie