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Microsoft breaks more Windows 11 local account creation options

Posted on October 7, 2025October 7, 2025 by Martin Brinkmann

It is clear that Microsoft is pushing Windows 11 users towards using a Microsoft account. While using one has advantages, part of the user base prefers local accounts because they are not tied to a Microsoft account, offer more privacy, and there is no risk of accounts being banned by Microsoft.

Up until now, workarounds existed to create local accounts in Windows 11. These required a bit of magic during setup, but they let users create a local account immediately.

Going forward, it appears that Microsoft is tinkering with Windows setup to make these bypasses go away.

In a recent Insider build, it posted the following announcement:

We are removing known mechanisms for creating a local account in the Windows Setup experience (OOBE). While these mechanisms were often used to bypass Microsoft account setup, they also inadvertently skip critical setup screens, potentially causing users to exit OOBE with a device that is not fully configured for use. 

The consequence, according to Microsoft? “Users will need to complete OOBE with internet and a Microsoft account, to ensure device is setup correctly.”

In other words, Microsoft is forcing users to go through the process of setting up their device and system with a Microsoft account. Even users who have no interest in using one are required to use one during setup.

They can still create a local account after setup ended and remove the Microsoft account, but this requires even more work on their part to set up the operating system.

Microsoft says that it is doing so because setting up using local accounts bypasses “critical setup screens”. The company does not reveal which, but if your first thought is upsells, you are probably not too far off the mark here.

Using a Microsoft account is the first step towards signing up for Microsoft 365 — you need Office and more online space right — or a Game Pass — you play games, right — or towards using Copilot, Edge or other company products.

Bypasses continue to exist, but they require tweaking Windows installation media, something that most users may not be willing to do. It may also lead to more downloads of installation media from third-party sources, which is also increasing the risk of malware infections.

Another option, at least for now, is to set up Windows 11 using an older image. This should work but may require extended upgrades to make sure the system is supported.

Now You: what is your take on this? Should Microsoft give users clear options to use local accounts or a Microsoft account? Feel free to leave a comment down below.

Tags: windows 11
Category: Windows

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