Ah, I misunderstood. If there’s no Internet during initial install, pretty sure it’ll just default to using local. I’m not 100% certain, though, as I’ve not setup a totally offline install in a long time. I also haven’t used any edition of Windows that wasn’t at least Professional or Enterprise, so I’m guessing there’s differences there as well for account management.
Yikes, that’s ridiculous. Microsoft incompetence and greed at its finest.