I work at a place where they re-issue iPhones to various employees. One of these iPhones has been re-issued at least 3 times. Which means that there are at least 3 Apple ID/iCloud accounts that have been associated with this iPhone.
The procedure was to wipe the phone ( Settings > General > Reset > Erase All Content) and then create a new Apple ID / iCloud account for the new user using the phone.
However...today we got a message that said
Can’t Create AppleID
This device is no longer eligible for creating a free iCloud account, and I believe that is because three people had accounts associated with it before.