Windows 10: I cant switch back to local account. It says "we cant verify your identity".

I signed in my Microsoft account on my computers and it changed the way I login. Instead of typing my password, I wanted to add a pin so that I can login faster.When I try to setup the PIN, I get this loop dialog box. Already tried deleting the NGC Folder. I can create a new user but I don't want to transfer and reinstall every software again. Then the dialog box gets stuck, whatever button I click it just keeps popping up again unless I close it from the taskbar.Also I tried switching back to local account, after signing in, I am suppose to be able to add local account again but instead, it

:)

 

Can't switch back from Microsoft account to Local account

I had on my W10 a local account as administrator. I've logged it with my Outlook account, in order to purchase some item from Microsoft store. Now I want to revert back to Local account, but doesn't work. Of course I'm using my now my Outlook password instead of the local password which was different.
After switching to Microsoft account Windows updated to 21H1 build 19043.

I've verified my account on Windows with alternative email address, yet it says my identity is not verified.
Settings > Accounts > Your info > Sign in with a local account instead > Sorry, we couldn't verify your identity. Please try again later.

 

Trying to switch from MS account to local account

Mybe you have to set your Windows account password. Not sure at which step are you..

Check Tutorials: tenforums tutorials |switch-local-account-windows-10

 

Local vs Network user accounts

I just did a VM install, just to verify that I don't speak total crap.

Steps I took:

1. Installed Windows 10 Pro x64 Build 15063.0
2. Entered the License Key
3. Created a local account
4. Went to accounts and added my Microsoft account
5. Let Windows use this account for all apps
6. Checked status on Microsoft account web page.
7. Verified that the VM shows up there
8. deleted my VM locally
9. created a new VM installation without entering the License Key (on same VM but totally new Virtual disk)
10. re-did steps 3-7
11. verified that my VM is activated.

And indeed it is activated and I login to my VM using local account which is linked to my MS account.

Should I create a Video of this or do you trust my word on it? Or better yet test it yourself if you have a valid license key you can waste on a VM.