I was getting below error message in cPanel while creating addon domain from cPanel >> Addon domain :-
(XID pap453) Sorry, the domain is already pointed to an IP address that does not appear to use DNS servers associated with this server. Please transfer the domain to this servers nameservers or have your administrator add one of its nameservers to /etc/ips.remotedns and make the proper A entries on that remote nameserver.
You will need to set below entries as "on" in server configuration:
WHM >> Server Configuration >> Tweak Settings >> Allow Remote Domains --> set to "On"
WHM >> Server Configuration >> Tweak Settings >> Allow Unregistered Domains --> set to "On"