For all users experiencing this issue: please confirm you have deleted the other contact and cleared your cache before adding or updating the email address of the new contact. If there are any contacts in your portal with this email address, you will receive an error, however if you have deleted the contact, you should not have an issue.
First step: delete old contact record
Second step: clear cache
Third step: add new email address to the contact record and save.
To confirm, you deleted the original contact record that had this email address?
If you can send along a link to the contact who you would like to have the email address associated with as well as the email address itself (either here your through a direct message), I can investigate this further.
For all users experiencing this issue: please confirm you have deleted the other contact and cleared your cache before adding or updating the email address of the new contact. If there are any contacts in your portal with this email address, you will receive an error, however if you have deleted the contact, you should not have an issue.
First step: delete old contact record
Second step: clear cache
Third step: add new email address to the contact record and save.