Microsoft 365 Tenant - Domain being held hostage?!

Scenario.

1. Domain allocated to a Microsoft 365 tenant (A)

2. Domain name expires and legal ownership changes.

3. Domain cannot be allocated to a new Microsoft 365 (B) tenant as, correctly, no access is available to the previous owners tenant (A)

Microsoft is the only large IT Services provider I am aware of that does not allow the transfer of a domain to a new tenant via a domain name verification process.

Not quite sure of the legality of this but at face value it looks like Microsoft is facilitating the illegal use of a domain name by a third party.

I am now at over a week waiting to get this resolved and this is yet another example of the frustration many clients have with Microsoft 365.

If anyone can provide a signpost to get this issue resolved it would be greatly appreciated.