Users can bypass the Microsoft account requirement during Windows 11 setup by disconnecting from the internet, using a fake email address, or creating a local account after the initial setup. Another method involves using the Rufus tool to create custom bootable media, which disables the Microsoft account requirement during installation.
The OOBE\BYPASSNRO command is used during Windows 11 setup to bypass the network requirements and allow users to continue with the installation process without an internet connection6. It enables the option "I don't have internet" to appear, letting users proceed with a limited setup and create a local user account.
Microsoft recently removed the instructions for converting a Microsoft account into a local account from its support page. Despite this documentation change, most of the workarounds for creating a local account still work in both Windows 11 23H2 and 24H2.