I think you can also simply unlink and sign out of the Microsoft account once logged in to effectively make it a local user, but your user folder is stuck using the username of the Microsoft account, which also gets cutoff after like 8 characters.
I abhor the whole process and it's annoying because there's no other way to create a local account during Windows 11 setup on e.g., a laptop because it knows that the wifi module works and will not let you progress unless you connect to the internet. I tried unplugging my modem and connecting to my internet-less router, but it still refused to progress because it didn't have internet access.
Don't even get me started on the other dark patterns once you actually have a local user setup, like being pushed through part of the OOTB Windows setup again after a major feature update asking you to login into a Microsoft account and making sure you still want all the (user accessible) telemetry off.
The worst part is that I actually like Windows 11 and some of the new features like the tiling layouts when hovering over the maximize button on a window, the new default terminal program, etc. But, the whole thing is entirely soured by dark patterns like the aforementioned forceful use of a Microsoft account, all the extra Edge and Bing crap being shoved down my throat, the poor web-first Windows search, widgets just basically being an MSN feed, Teams starting at login by default on a new install, random apps and games being advertised in the start menu on a new install, etc.