Why does my Xbox 360 say "You cannot create a Xbox live account now."?

Hello there, this is Manuela!. I'm an Independent Advisor and community user like you

I recommend you to create your Microsoft account from here instead:
https://signup.live.com/signup

Creating the account directly using an Xbox 360 is not recommended.
Once you create the account you can sign in without problems on the Xbox 360

Fortnite is free to play and does not require Xbox live, why do I have to create a separate profile with no subscription in order to play at the same time, it makes no sense except for being a cash grab. And now that his fortnite account is linked to my Xbox account Epic Games won't allow you to switch it to a different Xbox account.

Basically you've created a second account on the website instead of joining Live with the profile you already have on your console. If you want to use the account you created on the website, you will need to download it to your console -

support.xbox.com/.../download-your-xbox-live-profile-to-another-360-console It will be separate from the account you have on your console already and cannot be merged with that account.

It just says on xbox live that the account cannot be added right now. On the console it says that there is a problem with the account and it cannot be added now. Please try later.

Every time I try to download my profile onto a new xbox 360 it tells me Sorry, Xbox live profiles can't be downloaded right now. Try again later. 801540A9. Tried to create profile with Xbox Live and it keeps saying this account is being used.