Microsoft Starts Removing Local Account Option in Windows 11 Setup
Microsoft has started testing a big change in the latest Windows 11 Beta build (26120.6772) — the removal of the local account option during setup. This means that when you install Windows 11, you can no longer create a local account from the start. Instead, you must sign in with a Microsoft account to complete the installation.
According to Microsoft, this change aims to make setup smoother and ensure users experience all security and cloud features, such as OneDrive backup and device recovery. However, for many users, this update feels restrictive. Local accounts have long been a preferred choice for people who want privacy, offline use, and more control over their PC setup.
Why Users Prefer Local Accounts
Many users prefer creating a local account first before connecting to a Microsoft account later. The main reasons include:
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Avoiding automatic OneDrive sync: Using a Microsoft account during setup automatically links folders like Documents and Pictures to OneDrive.
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Better privacy and control: Local accounts don’t send usage or sync data to Microsoft services.
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Custom username and folder structure: When using a Microsoft account, the user folder is often named after your email address, which can look messy.
Can You Still Create a Local Account?
For now, yes — but it’s getting harder. Some methods still work, like choosing the “Domain join instead” option during setup or using tools such as Rufus to create a bootable USB that bypasses the Microsoft account requirement. Rufus even lets you preconfigure a local account automatically.
Advanced users also use XML answer files to automate the Windows installation and add local accounts manually. However, if Microsoft continues removing these built-in options, this may no longer be possible in the future.
Why This Matters
This change reflects Microsoft’s growing push toward cloud integration and online accounts. While convenient for syncing data and accessing services, it limits user freedom and offline flexibility. Users who prefer standalone setups may find this frustrating.
Final Thoughts
Right now, you can still find ways to install Windows 11 with a local account — but Microsoft is clearly steering users toward online accounts. If this continues, the days of fully offline Windows installations might be numbered.
I’ve also made a video on this topic — you can watch it below.
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