Hmm,
If you’re getting this exact error message, I don’t think there’s much Netlify can do. The error comes from NS1 when Netlify tries to create a DNS Zone there, so it’s outside what Netlify can control. If Squarespace says they’ve deleted the DNS Zone, there could be a possibility that it’s still either:
- Registered somewhere else by a previous owner of the domain (if any)
- Some NS1 internal issue
In both of these cases, you should be able to resolve it by contacting NS1 support,
Edit: I found a pretty helpful link here
You still may need to contact Squarespace to confirm they deleted the DNS zone though.