Windows 11 Local Account workaround "ms-cxh:localonly" no longer working

Why this happens​

Fix it on the existing install​

• If you have Pro/Enterprise: run secpol.msc → Security Options → Accounts: Block Microsoft accounts → set to This policy is disabled → restart.
• Any edition (Registry, run as admin), then restart:
  
  Code:

  reg add "HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\Policies\System" ^
  /v NoConnectedUser /t REG_DWORD /d 0 /f

wsreset.exe
Get-Service ClipSVC, AppXSVC | Set-Service -StartupType Manual
Start-Service ClipSVC; Start-Service AppXSVC

Get-AppxPackage -AllUsers Microsoft.WindowsStore |
  Foreach {Add-AppxPackage -DisableDevelopmentMode -Register "$($_.InstallLocation)\AppxManifest.xml"}

# Optional: refresh key inbox apps if they still misbehave
Get-AppxPackage -AllUsers Microsoft.WindowsNotepad, Microsoft.Windows.Photos, Microsoft.WindowsTerminal |
  Foreach {Add-AppxPackage -DisableDevelopmentMode -Register "$($_.InstallLocation)\AppxManifest.xml"}

• Settings → Accounts → Your info → Sign in with a Microsoft account instead, or open Microsoft Store → profile → Sign in.

For future installs (avoid this issue)​

• Use the supported offline path: at OOBE press Shift+F10 → run:
  OOBE\BYPASSNRO
  The PC reboots and shows “I don’t have internet,” letting you create a normal local account without tripping the MSA block. Or finish setup with an MSA and then switch to a local account in Settings afterward.

• Your exact Windows edition and build (winver)
• What error you get opening Store or when trying to sign in
• Whether “Accounts: Block Microsoft accounts” still shows as enabled after reboot