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Windows 10 login account and Office 365 login

My apologies if this is trivial!

A user has an office 365 account for the desktop apps and has an office 365 business app for the desktop apps.. Email is managed by an outside company but trying to get them to move email to office 365 at some point.

He can go to portal.offfice.com and log in with hisname@domain.com

He is in a workgroup with 1 machine. His windows 7 machine with username "hisname" died.

On his new win 10 machine, I want to do things "right".  I thought that meant to use a microsoft account - his  hisname@domain.com address since he's paying money to microsoft and that works at portal.office.com.

But creating a user on that machine using that address, I get

'That Microsoft account doesn't exist'....

I can create that but it wants person's name, birthdate, etc.  Is that the route I need and want to take? Or since he can log into office 365, he should be good to go?  Or is there something else I need to do?

thank you
Windows 10Microsoft OfficeMicrosoft 365SBSWindows OS

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John

8/22/2022 - Mon