Account Creation Status: failed. A database owner with the name <account-name> already exists.

I have deleted the account from the WHM but while recreating it, I was getting below error -

Account Creation Status: failed
A database owner with the name <account-name> already exists...

It's a bug in the cPanel system, where some configuration files are not removed by the account-deletion scripts.

Solution:

1. Go to /var/cpanel/databases

2. Find the following two entries for the terminated (deleted) account name:
<account-name>.cache
<account-name>.yaml

3. Delete these two files.

4. Now, successfully recreate the terminated account via WHM.

That's it!
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