Probably not, all you need account for is for sign in after all. MS account just has additional benefits related to syncing your settings and some settings enabled by default like it is with this OneDrive feature and BitLocker encryption, but most of it can be replicated afterwards with local account.
If I understand it correctly this behavior happens only for newly deployed computers if you sign in with Microsoft account so there are no unexpected uploads to OneDrive, only downloads of your existing files if you used this feature before.
Although once you start saving files you might not realise files are being saved to also OneDrive. All in all it is a weird and dumb change, that popup where you are prompted if you want to enable known folder move was perfectly fine.