Of course, we are not sure the reason that would be the case either. In most cases the Apple Account is locked for security reasons where you are required to reset the Password. Being able to reset the password immediately is done by using either a Trusted Device (which is one currently logged into your account), or a Trusted Phone Number that was previously setup on the account to facilitate recovery by using a code sent to that number. Without either of those methods, then Account Recovery is the only option with any other information you can provide, and it may be possible that there is not enough to prove ownership and you would need to set up a new account.
It is not possible to use an email address that was used for a previous Apple Account to set up another one. You would need to create a new email address and I recommend to use one from a third party email provider, because if you use an iCloud email address, you will not be able to access any emails sent to it without a working password or access to the account and is just another roadblock that would make account recovery more difficult.
Here is the Support Article Apple provides for a locked, inactive, or disabled account.
If your Apple Account is locked, not active, or disabled - Apple Support
If you need to remove the account from the phone and cannot do that because it requires the password, then you have to follow the steps to remove the Activation Lock. The phone will need to be erased and all data would be lost. There is no way around that.
https://al-support.apple.com/#/additional-support
The other way an Apple Account can be terminated is through a violation of the Terms of Use. Apple does not have to disclose the reason, but in most cases the reason is known by the user as they are willfully doing some action that is not acceptable. That does not seem to be the case for you with the information that has been provided.
If you fail, or Apple suspects that you have failed, to comply with any of the provisions of this Agreement, Apple may, without notice to you: (i) terminate this Agreement and/or your Apple Account, and you will remain liable for all amounts due under your Apple Account up to and including the date of termination; and/or (ii) terminate your license to the software; and/or (iii) preclude your access to the Services.
Legal - Apple Media Services - Apple