5 answers
The offline account option is available during installation if you simply don't have an internet connection when Windows asks you to sign in with your Microsoft account - Windows will automatically be forced to create a local account. Practical trick: unplug your network cable or disconnect from Wi-Fi as soon as the installation routine asks you about the account. After installation, you can reconnect and use everything normally without Microsoft constantly bugging you later.
But it's become annoying. During the installation process, you can choose the "Offline account" option - but it's deliberately hidden. If you go the standard route, Windows keeps pushing you to sign in with a Microsoft account. You'll need internet for the installation and have to actively search for the local alternative, usually buried at the bottom of the dialog.
Here's the thing: Microsoft wants you to use a Microsoft account. Even if you install offline, later on your computer might try to force you into it. There are workarounds though - some people completely disable the network connection during installation or use custom installation images. If you just want a local account without the hassle, it's genuinely annoying right now, but technically still possible.
After the installation, you can create a local account afterwards and delete the Microsoft account if you want. That's probably the most straightforward way to avoid constantly fighting resistance during setup.
You can disconnect the network during installation or intentionally enter wrong credentials on the sign-in screen - then you'll be offered the option for a local account! That's the easiest workaround if the hidden "offline account" option isn't showing up.
Windows 11 will let you create a local account during installation if you just don't have an internet connection - I did it myself, disconnected the network and the setup routine offered me the option for an offline account, way less hassle than before. After that you can work normally without a Microsoft account, though some features just won't work.
I've tried this myself and can confirm that the trick with the disconnected internet connection works - just keep in mind that Microsoft designed it that way on purpose, because they'd rather push you toward an online account. What the other answers don't mention: if you end up with a local account and eventually connect it to the internet, Windows will keep trying to get you to switch to a Microsoft account, so expect pop-ups showing up regularly.
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