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I understand your frustration with the account transfer process. Let me clarify what's happening and what options you have.
The issue you're encountering is that AWS doesn't allow transferring an account to an email address that's already associated with another AWS account. This is a fundamental limitation of the AWS account system that isn't clearly stated in the transfer instructions.
When transferring AWS account ownership to another entity:
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The receiving entity must use an email address that is not already associated with any AWS account.
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The deactivation of MFA is typically required during the transfer process as a security measure, but you're right that the system may prompt you to re-enable it at certain points, which can be confusing.
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The "Edit" option for account settings may have a different name depending on the console version, so "Update Email Address and Password" under Account Details → Actions is the correct path.
For your specific situation, since the new entity already has an AWS account, you have a few options:
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Ask the new entity to provide an alternative email address that isn't associated with any AWS account.
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If the goal is to consolidate resources, consider using AWS Organizations to manage multiple accounts instead of transferring ownership. The existing account could be invited to join the new entity's organization.
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Contact AWS Support again with this specific issue (email already in use) to see if they can provide a specialized solution for your case. You can open a case in your Support Center to reach them: go.aws/support-center
The account transfer process requires consent from AWS and following their specific procedure, which unfortunately doesn't support transferring to an email already associated with another account.
Sources
Transfer my account to a new owner | AWS re:Post
Move an account to AWS Org from another Org | AWS re:Post
Problem logging into another account | AWS re:Post
