Microsoft might be cracking down on Windows 11 local account setups — here's what we know so far

Microsoft has released a new Windows Insider Preview Build 26220.6772 that could make it harder or impossible to set up Windows 11 without first signing in to a Microsoft account.
Spotted by our friends at Tom's Hardware, the patch notes for the build refer to the out-of-the-box experience (OOBE) or the setup process for a new Windows 11 installation. This update makes it harder to get around restrictions to use a local account.
The notes mentions removing "local-only commands" saying that previous "known mechanisms" for bypassing Microsoft sign-ins are being looked into.
"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 Insider blog post reads.
The note goes on to say that the build will require users to log into their Microsoft account. If not they could skip "critical setup screens." Doing so could cause the OOBE to crash. You also have to be connected to the internet during the process to ensure the "device is setup properly."
Microsoft claims this only affects direct installations and not managed devices.
Ways around
There were ways to get around a Microsoft account sign-in including using the start ms cxh:local only command, which has been removed. The company previously disabled the "bypassnro" method in the run command screen.
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As far as we're aware, one route to take is to run a script-based unattended installation, but not everyone may want to do that due to privacy concerns.
We have seen comments from Tom's Hardware readers and on Reddit saying that this appears to only be for the initial installation. One person said that once they installed with a Microsoft account, they created an Admin user and deleted the original to avoid Microsoft "bloatware."
There are concerns that using a Microsoft account gives the company data while allowing it to stuff your laptop with its own programs and advertising.
Not fully here yet
Microsoft is cracking down on this ability just as Windows 10 nears the end of its life in just a week.
It's possible removing the ability to login without a Microsoft account will enable the tech giant to advertise its Microsoft 365 and OneDrive plans to users making the Windows 11 switch.
Windows Insider is Microsoft's beta testing channel that you have to sign up for to get the latest Windows builds. So it's not clear when or how long it'll take for this feature to roll out to the public releases.
It's possible that backlash to the feature could persuade Microsoft to reconsider implementing this feature.
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Scott Younker is the West Coast Reporter at Tom’s Guide. He covers all the lastest tech news. He’s been involved in tech since 2011 at various outlets and is on an ongoing hunt to build the easiest to use home media system. When not writing about the latest devices, you are more than welcome to discuss board games or disc golf with him. He also handles all the Connections coverage on Tom's Guide and has been playing the addictive NYT game since it released.
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