Microsoft clamping down on Windows 11 local account setup — latest Insider build removes 'local-only commands,' skipping Microsoft account sign-in will crash setup process

Windows 11
(Image credit: Microsoft)

The Out of Box Experience (OOBE), what Microsoft refers to as the setup process for a new Windows install, just received a significant update — it's now even more difficult to bypass restrictions in order to use a local account. For ages, people have employed creative tricks to circumvent signing into a Microsoft account before getting into Windows, but the company is making it increasingly clear that it's not an option to skip this part.

In the patch notes for Insider Preview Build 26220.6772, Microsoft explicitly mentions the removal of "local-only commands" and says these "known mechanisms" for bypassing online sign-ins are being addressed. It requires every user to log into their Microsoft account, or they'll end up skipping "critical setup screens" that will eventually crash the OOBE, forcing the user to start over. You must be connected to the internet throughout to "ensure device is setup correctly." This also only affects direct installs, not managed devices.

oobe bypassnro

(Image credit: Tom's Hardware)

This tightening of policy comes at a time when Windows 10 is just a week away from being phased out of active support. So, with users being forced to migrate to Windows 11, critics could see this as Microsoft prepping for a mass sales pitch where it can advertise its Microsoft 365 and OneDrive plans, which are routine parts of the internet-connected OOBE, to a lot of new eyes.

Right now, though, this change has only been introduced in the Dev channel, which suggests that it might take some time to be adopted in the public release that everyone uses. Microsoft tests new features in this channel, some of which make their way onto the Beta and Release Preview channels, from where a stable launch becomes imminent. There is a tiny sliver of hope that poor reception of this news might persuade the company into reconsidering this decision, but it's more so just a matter of time, rather than a matter of opinion.

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Hassam Nasir
Contributing Writer

Hassam Nasir is a die-hard hardware enthusiast with years of experience as a tech editor and writer, focusing on detailed CPU comparisons and general hardware news. When he’s not working, you’ll find him bending tubes for his ever-evolving custom water-loop gaming rig or benchmarking the latest CPUs and GPUs just for fun.

  • Heat_Fan89
    I wonder if using an older version of Windows 11 will still support the bypassing of a Microsoft account? I have several USB drives I created with Windows 11. The benefit for me in bypassing the Microsoft log in during setup is that once you connect on the internet, Microsoft starts to download bloatware on your PC and drivers that maybe out of date.

    Microsoft has made paying for Windows an insult. This bloatware ad invested, data harvesting, phone home OS should be given away for free and a case could be made that Microsoft should pay you for all the Ad and data mining money Microsoft is making by using it.
    Reply
  • USAFRet
    This is only for the initial install.

    It appears that creation and use of local accounts after that is not restricted.
    Reply
  • MadocOwain
    I just went through this with a new laptop last week. I opted to use a Microsoft account to get through all the nag screens, then created a new Admin user and deleted the original user. I was able to go about my usual routine of removing OneDrive and other M$ cruft without issue.
    Reply
  • Heat_Fan89
    USAFRet said:
    This is only for the initial install.

    It appears that creation and use of local accounts after that is not restricted.
    That is when I use Shift F10 to pull up command prompt and enter oobe\bypassnro. If I read this correctly, they look to disable that in the future. But my question is if an older version of Windows 11 created on a bootable USB will still allow that? I think it should still work.
    Reply
  • USAFRet
    MadocOwain said:
    I just went through this with a new laptop last week. I opted to use a Microsoft account to get through all the nag screens, then created a new Admin user and deleted the original user. I was able to go about my usual routine of removing OneDrive and other M$ cruft without issue.
    I do the same, but leave the original MS account.
    Just don't use it.

    Local Admin and Local Standard users for daily activities.
    Reply
  • LordVile
    I still don’t get people’s issue with this when they’re giving their data up on everything else too.
    Reply
  • Heat_Fan89
    LordVile said:
    I still don’t get people’s issue with this when they’re giving their data up on everything else too.
    Good point! But my issue is not giving up data because once you connect to the internet, you are free game. My issue is that I am paying for them to install bloatware, data mine and push ads on a paying product.

    If it's free and they are making money from it, I have no issues with that. However it's costing me money and if i'm not getting a cut then I will not use a Microsoft account.
    Reply
  • LordVile
    Heat_Fan89 said:
    Good point! But my issue is not giving up data because once you connect to the internet, you are free game. My issue is that I am paying for them to install bloatware, data mine and push ads on a paying product.

    If it's free and they are making money from it, I have no issues with that. However it's costing me money and if i'm not getting a cut then I will not use a Microsoft account.
    You didn’t pay for your phone? Everything mines data now even if you pay for it. Car, phone, subscriptions, consoles, visa, Mastercard. It’s everywhere

    Also you can’t actually do much without connecting to the internet anyway and if you’re going to be offline forever you might as well install W7 at it functions better offline.
    Reply
  • USAFRet
    Heat_Fan89 said:
    However it's costing me money and if i'm not getting a cut then I will not use a Microsoft account.
    And again, this is only for the initial install.

    On my house systems, the MS account was used for initial setup.
    There after, almost never. My main system, I don't think I've logged in with the MS account this year.
    My travel laptop, a MS Surface, this year and last year...lol
    Reply
  • Notton
    The rufus tool also has an option to disable oobe/nro when making a bootable USB drive for installing winblows.
    Reply