It syncs your settings, preferences, and BitLocker recovery keys (which protect your data) to the cloud.
A is tied to a single physical device. A Microsoft account is a cloud-based identity that works across all your devices. What is a Microsoft account? do i need a microsoft account
If you bought a new computer with , Microsoft now requires an internet connection and a Microsoft account to complete the setup. You cannot create a local (offline) account without using workarounds (like disabling your Wi-Fi during setup or using specific commands). It syncs your settings, preferences, and BitLocker recovery
This is where it gets tricky.
The main reason people want to avoid a Microsoft account is privacy. Microsoft uses your data to personalize ads and services. If you create a local account (offline), you are essentially cutting the cord with Microsoft’s servers. What is a Microsoft account
If you are setting up a PC for a business or you are a tech enthusiast, you can skip the Microsoft account entirely. During setup, simply disconnect the internet (unplug Ethernet or turn off Wi-Fi). Windows will default to creating a "Local Account" that is not tied to Microsoft.
While the setup process can feel intrusive, the security of having your device encrypted and your files backed up to OneDrive outweighs the annoyance. It turns your computer from a generic box into a personalized, secure workspace.