If you want to get around having to connect to the internet and login with a MS account, you can enter the command prompt and run:
oobe\bypassnro

The command prompt opens in C:\Windows\System32. In \Windows\System32, is a folder called oobe. And inside the oobe folder is bypassnro.cmd. So, that is what you are running with the command oobe\bypassnro.

The bypassnro.cmd is a script which contains:
@echo off
reg add HKLM\SOFTWARE\Microsoft\Windows\CurrentVersion\OOBE /v BypassNRO /t REG_DWORD /d 1 /f
shutdown /r /t 0

Disable Device Enrollment Program (DEP) notification on macOS Monterey.md

NB! command-R is replaced with holding the power button on M1 macs.

With full reinstall (recommended)

   a. Boot into recovery using command-R during reboot, wipe the harddrive using Disk Utility, and select reinstall macOS

   b. Initial installation will run for approximately 1 hour, and reboot once

   c. It will then show a remaining time of about 10-15 minutes

   d. When it reboots again, be sure to press command-R to boot into recovery and continue with Main procedure

Without full reinstall

Boot to Recovery Mode by holding command-R during restart and continue with Main procedure

Main procedure

1. Open Utilities → Terminal and type

$ csrutil disable
$ reboot

2. Hold command-R during the reboot to enter Recovery Mode again

3. Enter Disk Utility, and mount the Macintosh HD volume (or whatever your main volume is named). (It might already be mounted.)

4. Exit Disk Utility, open Utilities → Terminal, and type

$ cd "/Volumes/Macintosh HD/System/Library"
$ cd ../../etc
$ echo "0.0.0.0 iprofiles.apple.com" >> hosts
$ echo "0.0.0.0 mdmenrollment.apple.com" >> hosts
$ echo "0.0.0.0 deviceenrollment.apple.com" >> hosts
$ echo "0.0.0.0 gdmf.apple.com" >> hosts
$ csrutil enable
$ reboot

5. If you come to the “Choose your country/location” dialogue, make sure to not select a wireless network, but “continue without an internet connection”

6. After a normal boot, you can verify the DEP status in Terminal:

$ profiles status -type enrollment
Enrolled via DEP: No
MDM enrollment: No