Domain will not verify

I am trying to verify our domain and I have setup the TXT record as follows with a TXT value of MS=ms71336565 at our DNS provider. I have checked that the TXT records exists by doing an nslookup, but I am still unable to verify the domain. I have also tried the below from the Windows Azure AD Module for Powershell. New-MsolFederatedDomain -DomainName example.co.uk -SupportMultipleDomain

I have replaced our actual domain name with example.co.uk

When I run the above from the poweshell I get the below error.

New-MsolFederatedDomain : Domain verification failed. Make sure that you have
created the necessary DNS entry. Note that it may take some time for the
change to take effect.
At line:1 char:1
+ New-MsolFederatedDomain -DomainName example.co.uk -SupportMultipleDomain
+ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+ CategoryInfo : InvalidResult: (:) [New-MsolFederatedDomain], Fe
derationException
+ FullyQualifiedErrorId : DomainOwnershipVerificationFailed,Microsoft.Onli
ne.Identity.Federation.Powershell.AddFederatedDomainCommand

New-MsolFederatedDomain : Before you can continue, you must verify the domain
for single sign-on.
At line:1 char:1
+ New-MsolFederatedDomain -DomainName strathallan.co.uk -SupportMultipleDomain
+ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+ CategoryInfo : InvalidData: (:) [New-MsolFederatedDomain], Fede
rationException
+ FullyQualifiedErrorId : UnverifiedFederatedDomainAlreadyExists,Microsoft
.Online.Identity.Federation.Powershell.AddFederatedDomainCommand

WARNING: Verify example.co.uk domain ownership by adding a DNS TXT record
with a text value of MS=ms71336565 or a DNS MX record targeting
ms71336565.msv1.invalid with a priority of 32767 at your domain registrar. For
more information, see "Create a DNS record at your domain name registrar"
located here http://g.microsoftonline.com/0BL10EN/118

I then run PS Get-MsolDomainVerificationDns -Do
mainName example.co.uk -Mode dnstxtrecord and I get the following.

Label : example.co.uk
Text : MS=ms71336565
Ttl : 3600

I am still unable to verify the domain. Directory syn works fine but all our local users are in Azure AD with the @example.onmicrosoft.com username. Ideally I am trying to get the domain verified and use user@example.co.uk for the usernames.

ADFS 3.0 is all up and working and users can login to Office 365 with SSO without any issues, and allusers are present in Office 365 with user@example.co.uk