Windows admins have options to create local or Microsoft Accounts when it comes to the operating system. The initial setup after installation pushes the Microsoft Account option but it was possible up until now to create to a local account instead. Microsoft has made it more and more difficult to create local accounts during initial setup and discouraged users to do so.
A report on Reddit suggests that Microsoft has made it more difficult to create local accounts during first run. The user reported that no option to create a local user account was presented during first run on the system Windows 10 was set up on.
The user revealed that he used the Download Tool and that the option to use an offline account was not available on the login screen. Offline account refers to the local account that Windows administrators may create.
One of the core differences between Microsoft and local accounts is that the former is a cloud-based account while the latter unique to the machine it is created on.
A Microsoft Account offers certain advantages such as the ability to use it on multiple machines, access to certain tools and services that require a Microsoft Account, or easier password reset options. The main advantage of a local account is that it is more private and that it cannot be attacked that easily as local access is required to do so.
As an added bonus, the username folder reflects the full chosen username and not just the first five letters of the email address used to create the Microsoft Account.
Microsoft is interested in migrating as many customers to Microsoft Accounts as possible as it moves customers closer into the company's ecosystem.
The report has to be taken with a grain of salt. While there have been reports about Microsoft hiding the local account creation option before, as early as Windows 10 version 1809 at the least, it is possible that Microsoft is A-B testing the change.
What you can do
One of the easiest options to overcome the limitation is to cut off the Internet connection during setup. The creation of a Microsoft Account requires an active Internet connection and if Windows 10 recognizes that there is none, it will automatically switch to the creation of a local account as it is the only possible option to complete setup at that point in time.
Doing so will also prevent that certain apps and games such as Candy Crush Saga are made available in Start on first launch.
Other options that may be worth investigating are to type in fake phone numbers or email addresses that won't validate to get the local account creation option to display.
Another option may be to use a Microsoft Account during initial setup but create a local account right away and start using it exclusively.
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