The trick with setting up a new workstation with a local account is to not connect your device to the internet
Then you get the option to create a local account
If you have already connected the device to the internet, you need to refresh the OS to get you back before the network connection screen. That being if you are connecting with WiFi, also make sure you have disconnected your network cable. The machine needs to be isolated before you get the option to create a local account.
You can then still add your Microsoft account/services and remain a local admin.