This error will appear if the customer is trying to set up a new UPS Account under Setup > Accounting > Shipping. If the account the customer is trying to set up on the new UPS Account is the same as the account on an existing UPS integration.
If customer wants to use the same UPS Account for multiple locations, they can just set the Location field on Registration page to blank so it can be used as well for other locations. If the Location field is set to blank it can be used for all the locations.
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