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It says, when choosing a custom domain that a certain website url (or domain) is taken, even though when you type it into a search bar (Chrome and Explorer) it can't find it, it doesn't exist! I'm wondering as to why this is, why a certain url that doesn't exist can't be claimed...???
This can happen for a number of reasons. The URL may be expired and not yet released back into the system so there's no site published and the domain isn't available.
Many people buy domains and simply don't use them often to prevent others using a domain that is almost identical to the domain they use for publishing. Some people publish to a .com domain and park the .org, .biz, .info etc for this reason.
Another popular process is buy up domain names for speculative purposes and sell them at a price that can be orders greater than what they paid for them. There's a whole sideline industry for this.