While trying to assign a Central Protection Manager policy which has Copy Recovery Points settings enabled, the policy assignment fails with the following error ' Unable to apply copy recovery points settings to node 'SERVER NAME' - the copy destination you specified is in use, please specify another copy destination '.
Check if a folder with 'Server Name' already exists on copy recovery point destination.
If yes, rename the folder with the server name to, i.e. SERVERNAME.OLD.
To add node again please follow the document :