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CMS-XML About deleting users from Mariner/PPM or Agile Planner
If you were to delete a user, the values on the financial views would be changed, task plans actuals would be changed, and work items would give unexpected behavior. Also, the corresponding relationships with that user (for example, the Product Owner, Dev Owner, etc) would be lost. Instead, you should make the users inactive , which frees up their license while retaining the associated data.
CMS-XML New user isn't in the dropdown or multi-select user lists
1) Delete the user that gave the license error. 2) Delete a different active user or make change another user to be inactive . 3) Re-add the new user that gave the license error earlier.

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