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I purchased a domain from Namecheap, say myname.example. I'm not hosting anything with this domain or or any of its subdomains. I want to create a G Suite account with the subdomain subdomain.myname.example, so that I can have Gmail addresses of the form ...@subdomain.myname.example.

So far, I added the TXT record from G Suite to Namespace with the host being the subdomain subdomain.myname.example. But G Suite is unable to verify my ownership with this. Is there something else I need to do?

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You can do this by adding/creating alias to your domain in Gsuite settings, which will create additional addresses for all your mail addresses for example all email addresses ending with @yourdomain.com can also be reached at @subdomain.yourdomain.com please refer this document for more elaborated information on this topic

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