Transferring to Microsoft - Add a record to verify a domain

Per the subject line, I am trying to transfer my domain from Squarespace to my Microsoft 365 portal.

I have added the TXT record as requested by Microsoft, to my SquareSpace TXT record, but when Microsoft tries to verify it, it returns this:

XXXX.COM was already added to a different Microsoft 365 organization, XXXX.onmicrosoft.com, which is managed by GoDaddy. To add this domain to this account you will need to contact GoDaddy support and have it removed from XXXX.onmicrosoft.com. After removal, it can take between 15 minutes and a few hours before you can add the domain here. Please wait, then come back here and resume this step.

Verified via MXToolbox that the TXT record above is now visible, but get the message at the top of the page when I try to verify the TXT record in Microsoft.

GoDaddy, confirmed that they don't have anything to do with the DNS of XXXX.COM and that it is managed by Squarespace.

What am I missing?  I unlocked the domain, received the transfer code, but nowhere in this process have I been asked to enter a transfer code.

My Nameservers are all Squarespace