You are receiving this error because you are attempting to update a multi-variation listing while the original Item on eBay is listed as a simple product with no variations.
There are a couple of possible scenarios that could have taken place:
1. eBay category that your product is listed in is used to restrict listings with variations while it does support them now. As a result of the restrictions, the product was listed as a single-SKU item on eBay and cannot be updated to a multi-variation one
2. Option ‘Ignore Variations’ in the Selling Policy was enabled when the product was Listed on eBay. While it’s set to ‘No’ now when the Item is being updated.
If you wish to sell your products as listings with variations on eBay, you would need to Stop the ones you have originally listed as single-SKU offers and List the new Items.
Or you can continue managing your listings the way they are listed now. For this, make sure that the correct simple Magento product is linked to the single-SKU eBay listing.
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