Windows 11 Update Tightens Local Account Setup Restrictions

08 Oct 2025

In a recent move, Microsoft has escalated its efforts to mandate Microsoft account sign-ins with the latest Windows 11 build 26220.6772 in the Dev channel Insider Preview. The build systematically removes several workaround options individuals previously employed to establish a local account during the Out-Of-Box Experience (OOBE) setup. This shift marks a significant change in the registration process, as the company seems determined to curtail users' ability to bypass Microsoft account and Internet connection prerequisites.

Critical Workaround Removal

The key workarounds eliminated include commands like OOBE\BYPASSNRO and the 'start ms-cxh:localonly' function. Users would typically leverage these commands from a Shift+F10 command prompt during setup to avoid creating a Microsoft account. This change, while initially introduced in Insider builds, still functioned for some users in the Release Preview builds. Its widespread application in upcoming public updates, such as the 25H2 release, or through monthly patches remains uncertain. Microsoft expressed concerns that these bypass methods accidentally circumvent critical setup screens. However, those applying the workarounds previously still encountered basic account creation and essential privacy setups.

Windows 11 Pro users had access to a domain-join trick permitting local account creation, but whether this method persists is yet to be confirmed.

New Features and Future Implications

Amongst these notable adjustments, Microsoft introduced a new 'SetDefaultUserFolder' command. This function now enables users to designate a preferred username for their user folder. This change aims to ameliorate a minor, recurring issue where using a Microsoft account for set-up typically generated lengthened directory names derived from the user's email address.

These rigorous adjustments underscore Microsoft's strategic direction towards enforcing Microsoft account sign-ins as a standard protocol for individual PCs. This approach is equally evident in their recent push for Windows 10 users to adopt account sign-ins to qualify for extended updates.

As Windows 11 continues its evolution, these updates reflect Microsoft's broader vision for integrating more cohesive user identity management. Whether these changes foster greater user efficiency or limit consumer flexibility remains a point of prospective discussion among users and tech analysts alike.

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