I get "Account Limit Reached" when trying to sign into iCloud

If the account is erased from server How to delete your Apple ID account - Apple Support that Apple ID cannot be used to sign in .

You need to sign in with another Apple ID that exists on server Sign in with your Apple ID - Apple Support

That can be verified by entering correct credentials .

To find your Apple ID, enter your name and email address at iforgot.apple.com. You may also be able to sign in to your device or on a web browser with an email address or phone number that you use with Apple services.

System preferences is not responding force quit it How to force an app to quit on your Mac - Apple Support

Another method see the article Quit an app or process in Activity Monitor on Mac - Apple Support

Open activity monitor , take cursor on top menu bar > view > click on windowed processes - if you see system preferences ( written in red colour system preferences not responding ) , select it go to force quit and quit system preferences .

Note : if you are trying to create email account already used from this Mac say example2@icloud.com this as an Apple ID and maximum limit of creating this mail address has been reused , the account will not be created.