I have tried two different sandbox accounts, both newly created in app store connect. Both account can be created without any issue but the account do not work when I try to use them for sandbox purchases. I get the same error as OP: "Password reuse not available for account The account state does not support password reuse." The same sandbox accounts also do not work when I try to sign in with them in the sandbox account section in the developer tab of settings on a simulator. I can go through the two factor steps and set that up but after that the sandbox account is still not logged in.