It's no secret that Microsoft would prefer you not to use local accounts on Windows. While you'd usually log into Windows with a Microsoft account, people have found ways to use a local account instead, which is stored on the PC and doesn't link to an online account. People prefer local accounts for privacy and convenience reasons, but, of course, Microsoft doesn't share the same sentiment. After all, online accounts enable the company to associate user activity and diagnostics with a specific person, which is excellent for data collection and analysis.

As you might expect, Microsoft has tried several times to prevent people from creating local accounts on Windows 11. Usually, the company simply says that it's patching out a method of making a local account. However, during its recent wave of loophole-closing, it stated a different reason for getting rid of a trick that allowed users to bypass the initial setup that forces them to sign into a Microsoft account.

It instead stated that it was resolving an issue where users could leave the out-of-box experience (OOBE) too soon, resulting in a "device that is not fully configured for use." However, as we'll see, its reasoning doesn't quite add up.

What Microsoft is patching out with the next update

Let's set the groundwork

Before we delve into what Microsoft claims it's doing, let's first ensure we understand exactly what it's fixing. When you boot up Windows for the very first time, either because you bought a new PC or you reinstalled Windows, it shows you a series of full-screen dialogue boxes before you reach the desktop. This is the out-of-box experience (OOBE), and its primary goal is to get the user all set up before they land on the desktop.

Part of the OOBE requires the user to sign in to a Microsoft account, with no option to skip the step. In response, people found a way to open the Command Prompt while in the OOBE and enter a command that would skip the entire process. This meant that the essential Microsoft sign-in screen was thrown aside, allowing people to sign in with a local account exclusively.

Microsoft's explanation for the loophole closure doesn't quite hold water

I'm not sure how "critical" the OOBE experience truly is

In the latest Windows 11 patch for Insiders, the company stated that it was going to fix this method. However, instead of simply saying that it was patching out a local account creation method, it instead took this angle:

Local-only commands removal: 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. Users will need to complete OOBE with internet and a Microsoft account, to ensure device is setup correctly.

At first glance, this seems legitimate. However, there's one word that's doing a ton of heavy lifting here: "critical." Now, the intensity of words varies from person to person. Still, for me, when something is a "critical setup screen," it means the computer is either severely hampered or inoperable if it's skipped. Microsoft may have a different meaning for the word "critical," because nothing during the OOBE really jumps out as something that needs to be done for Windows 11 to operate.

Off the top of my head, the most "critical" part of the OOBE is when the system gets you connected to the internet. But that's something you can easily do while on the desktop, and frankly, it feels like it's added to the OOBE so that you can sign into your Microsoft account later on. The rest of the OOBE is Microsoft offering you its services, such as OneDrive and Microsoft 365, which I suppose is "critical" in the eyes of its profit margin.

All in all, Microsoft's reasoning doesn't seem to be trying to stop people from using a partially set-up Windows 11. Instead, it really feels more like it just wants people to use Microsoft accounts, as there are several reasons why Microsoft would want them to do so.

Microsoft's battle versus local accounts continues

While Microsoft claims that its latest changes to the OOBE experience ensure that people don't "inadvertently skip critical setup screens," the truth is far more likely that the company just doesn't want us making local accounts. And as people continue to find ways to make them, we'll likely see more patches arrive to fix them.