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To add a local account to Windows 11, first navigate to Settings->Accounts. Then scroll down and click "Other Users." Click the Add account button.
Microsoft wants you to use a Microsoft account on Windows 11, but it accidentally listed several benefits of using a local account instead.
Microsoft has restored its guide on how to switch from a Microsoft account to a local account on Windows 11.
Also, you should be able to change from a local account to your Microsoft account without knowing your local account password. Go to Settings > Accounts > Your info and select “Sign in with a ...
Another option is to set up Windows 11 with a Microsoft account and then switch to a local one. Just head to Settings, select Accounts, and go to the "Your info" screen.
Microsoft removes documentation for switching to a local account in Windows 11 But most Microsoft account sign-in workarounds for Windows 11 continue to work.
Important: Before you delete the existing Microsoft account, you should back up all the data belonging to this old account – otherwise it will all be deleted!