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If I am reading this correctly your domain name .tld is the issue here and not the .onmicrosoft.com naming convention. If this is the case check where the DNS is pointing, and re-validate inside of 365. I assume that you are not going to switch your MX record until everything is validated, and then demonstrate to Microsoft with a DKIM record that you control the domain.

They should allow the switch of the .tld domain to your new tenant.

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They should indeed allow the switch of <ourproduct.com> to our .onmicrosoft.com tenant (instead of the previous domain name holder) but unfortunately this is a manual process as demonstrated by my experience.

We were indeed asked to add a TXT record (ms=....) to our domain which we did but this was not enough to be able to link the domain name through the admin panel ourselves because it was still linked to another tenant which held the domain name in the past.

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