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Sorry, missed your reply. I run the setup for Windows on a lot of computers. Last time I tried that command it wasn’t working. I used to be able to start the setup and once you got to the point of needing to sign in to a Microsoft account you could skip it. They removed that. Then this command you are talking about worked for a bit. Then removing the ethernet cable worked for a while, Microsoft closed that too. Currently I connect the machines to a network and attempt to log into an account, but mistype the password. This will give an error and allow a local account. Unfortunately these are machines for sale, so I can’t use a Microsoft account like they want. It’s a whole “thing”. However, if it’s your own machine, use Rufus to create a boot disk that will bypass the Microsoft account requirement.
Why would they block it? Because they want everyone to use a Microsoft account, and they have been getting more and more aggressive about it.
Edit: forgot to mention again, OP’s post image is from an update message and not initial Win 11 install. The command to skip the sign on is for OOBE, “out of box experience”. Aka initial setup.
For this screen not to come back, Settings notifications turn off the last three checkboxes
But will they care if the account continues buying games? Is it easier to let it slide, or force someone to make a new account, there by pissing them off?