Get a Pro edition key so you can join a domain and bypass that extortion.

Or get a Protonmail address that you can use as a burner.

Possibly its the same trick like faclook will let you use an email to make an account but then a day later locks it down and demands the phone number or picture. Its all about getting your info one way or another instead of letting you make a local account on your own pc

Shift f10
OOBE\bypassnro

That usually is due to your internet either being proxied or going through a VPN and your browser not matching the region your connection is coming from.

Could just be MS being MS. Their entire ecosystem is a mess. I have to use it at work and it's constant fails, errors and problems. I also have a MS personal account. 9 times out of 10 when I try to logon on the web I get a "you typed a wrong password too many times". I even have 2 factor authentication and still get it, even if I don't get the password wrong. Changed my password many times during the last year.