I have done this many times using the following method.
It has worked every time for me.
I can't see a reason using the method you describe so if there is indeed a reason, please enlighten me. I certainly don't know everything.
Disable internet requirements
On the "Sign in" page, use these steps:
Use the "Shift + F10" keyboard shortcut to open Command Prompt.
Type the following command to release the current network configuration and press Enter:
oobe\bypassnroQuick note: The command is a single phrase without spaces.
Computer will boot automatically, and you may need to start the out-of-box experience again.
Click the "I don't have internet" option.
@VolodymyrKotylo has informed me that an addition step is required although I have not seen it myself.
"One more step is needed after reboot: "ipconfig /release" on the sign in screen. And after that press "go back" and you'll see the username input screen"
Source (even though I already knew how to do this, the person I scraped this text from deserves credit)
Answer from Señor CMasMas on Stack ExchangeVideos
Making this post as I just had to deal with the newest patch that is preventing old methods.
When entering a fake email such as [email protected], new versions of Windows 11 no longer allow those emails and force you back.
Using the OOBE\BYPASSNRO works only if it is the first thing you do. On the computer I was working on I had already connected it to a network and the OOBE command would not let me set up a local user. On another device I ran that command first and it worked fine.
I was able to make a new user by entering an email with a few swears in it and any password and that yielded the old result of letting me add a new user.
Hope this helps!