When setting up a new Windows 11 computer, you are forced to set up a Microsoft account. The option to set up a local account is no longer available unless you perform the following:

When you start up a new Windows 11 computer for the first time, a “wizard” begins. At the first screen, where you select the country, perform the following:

1. Press Shift + F10. This will open a command window.
2. In the command window, type: OOBE\BYPASSNRO (no spaces) and press Enter

The computer will reboot and the option “I don’t have Internet” will become available for you to select and you can proceed to set up a local account.

UPDATE: Starting with Windows 11 25H2, the OOBE\BYPASSNRO has been removed, so the following method will accomplish the same thing:

When you start up a new Windows 11 computer for the first time, a “wizard” begins. At the first screen, where you select the country, perform the following:

1. Press Shift + F10. This will open a command window.
2. In the command window, type: start ms-cxh:localonly and press Enter

The computer will then reveal the screen to set up a local account.