Hi KH,
I had the same lament regarding Windows 11 blocking all ways of creating of Local accounts. I still go back to 10 as 11 is still having issues (high resource usage)
There is a workaround here
https://www.reddit.com/r/WindowsHelp/comments/1cgrzwt/how_to_make_a_local_account_in_windows_11/
-Bypass using a Microsoft account during the Windows 11 install process by opening a Command Prompt (Shift+F10) and typing ms-cxh:localonly or OOBE\BYPASSNRO
-Use Rufus
-Use a modified Windows 11 ISO (which is not recommended)
I highly encourage you to send a feedback here. https://support.microsoft.com/en-us/windows/send-feedback-to-microsoft-with-the-feedback-hub-app-f59187f8-8739-22d6-ba93-f66612949332
Warm regards,
Rez