I would be surprised that anyone is surprised by this. They've been making local accounts harder and harder now to the point of being impossible.
Anyone not deep in tech will accept the "think of the children" defense without much worry, and anyone who is deep in tech already knows that if you really want an OS that doesn't spy on you, you need to go to a *nix of some flavor.
That's nothing new. Ever tried to develop a driver? Or replace a system file? Or install an app on iOS not from the store? That war was lost two decades ago with the iPhone
Anyone disturbed about that ? It's your computer, running locally, but Microsoft can tell you 'no'.
It's like you want to open a folder and it asks permission to Microsoft.