I had the same problem, the origin was a locaI account linked with my Microsoft Live account, when I tried to link the same Microsoft account to my domain account Windows showed me the same error. I tried to delink the Microsoft account of my local account
but didn't work, deleting the local account didn't work either.
I thought that the problem was in the registry and I found this key:
HKEY_USERS\S-1-5-18\Software\Microsoft\IdentityCRL\StoredIdentities\*** Email address is removed for privacy ***
where *** Email address is removed for privacy *** is, obviously, my Microsoft account. Note than probably the user SID (S-1-5-18) will be different in your PC.
Just deleting this key I was able to link my Microsoft Live account with my Domain account. Do it at your own risk and only if you know what are you doing. If you finally decide to delete it you should make a backup of the key ;)