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Why do we receive the error "Invalid Email Address: Must be in domain(s)" when creating a new user even when the domain is included in the "Allowed Email Domain" section within Setup?

Knowledge Article Number 000240756
Description Admins might receive the following error when trying to create new users with email addresses whose domains are already included or whitelisted in the 'Allowed Email Domain' section within Setup | Manage users | Allowed email domains

Error: Invalid Email Address: Must be in domain(s)
Resolution The reason for the error could be the following :

- Your company has earlier requested Salesforce support to Disable email change verification and provided certain domains to be whitelisted at the backend.
- Once Email change verification has been re-enabled but domains whitelisted or added by support have not been completely cleared out at the backend.
- Your Admin then adds the domains to be whitelisted from Setup | Manage users | Allowed email domains.
- The domains which were earlier added at the backend will override domains that the admin adds from the "Allowed email domains" section and might cause this error.

 If you encounter this error and have already included the domains(within Setup) which is being used in the new users email addresses, please reachout to support to double check any domains which were whitelisted when disabling email change verification have been cleared out at the backend.

Note : 
Please refer to the following article for more information on how to define a whitelist to restrict the email domains allowed in a user’s Email field. If you do not see the option within the specified clickpath please request support to have the feature enabled.

Restrict User Email Domains

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