As part of fitting discrete outcome models MLwiN uses and names a number of columns. You can see an example of this on the line referred to in the error message that you describe:
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name c1180 'H' C1181 'F~(H)' C1182 'H*' C1183 'P' c1184 'MASK' c1189 'Y-VAR'
If when it gets to this point you already have a column with one of these names in your data then it won't be able to create it again and will display the message that you saw. It is also possible that columns with these names are left over from a previous model run, in which case I would suggest that you remove them prior to fitting the model.