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hypercubeFlag for United States of America

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Can't add a normal local user and log in to it.

I have encountered a laptop with a Microsoft login (I guess).  It's not typical of any of the other computers on the peer-to-peer network.
The login is AzureAD\Username - something I've never seen before.
Anyway, I'm trying to add a local user to the computer.
When I've done that, I have to select Other User.
It comes up asking for email address which is NOT what I used to set up the user PLUS Password.
It says: Sign in to: Your work or school account which is NOT what I used to set up the user.

If I click on other options and select the 10-key image, I get:
Username and PIN.
But I didn't set up with a PIN, only a password.

So, I seem to be at an impasse.

What's going on here?
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Jackie Man
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Jackie Man:  Thank you!  That clears up a lot!
Now to the objective:
I have NO idea (nor does the user seem to) how this computer got tied up in Azure AD!
He is using Microsoft Office 365 and no wonder he has been presented with some strange login requirements!
How do I get this computer out of this situation without breaking *anything*?
I'm rather sure if I suggest logging into Microsoft Azure AD Connect he won't have the foggiest idea what I'm talking about.  And, obviously, neither do I!
Anyway, I'm pretty sure that's what we need to do.
I found this:
https://gcits.com/knowledge-base/remove-work-or-school-account-option/

This user appears to be the Administrator already - so that helps.
I see a list of names associated with Office 365 or BI.
It's important that they continue to have use of Office 365!!
Yet, the instructions suggest removing the users, right?
I don't want to break things.

I don't have much feel for the implications of doing this.
Your situation seems closer to this:
https://www.zdnet.com/article/windows-10-tip-switch-back-to-a-local-account-from-a-microsoft-account/

Now, that said, I'm sure that there a number of items where it is quickly signing the user into 365 quickly (ie MS Office). Clearly, you can still use 365 for things while on a local PC account. Just how tied in and the user experience may somewhat change. Depending on what exactly they were using, I don't see this being the worst.
Yes BUT .. this seems to be worse than that.  
The owner of this small company set up his own computer with Office and became an Azure AD Administrator.
It appears that Jackie Man hit the nail on the head.

EITHER:
I can figure out how to leave everything as-is and still get him to be able to access the local shared files.
(The file sharing approach is by matching username/password between the workstation and the file-serving workstation.  However, it doesn't seem to like the AzureAD user on the laptop.  AND I can't create a normal local user on the laptop).  
OR:
I can figure out how to remove him as Administrator for Azure AD altogether.

The latter seems preferable because his account on the computer is all tied up with School or Organization logins and PINs that nobody knows about.  Often one cannot use a password  login.  Often there are strange popups for logging in, etc.  That just has to be part of this #$)&%###!!  Azure Ad stuff.

The trick will be keeping Office working.
All of the people in the office are listed in the Azure AD group with their Office 365 affiliations.
So, here is my tentative plan:
1) create a new Administrator on xxx.onmicrosoft.com
2) remove ONE of the users from the Azure AD list and see what happens. Keep Office 365 working or restore.
3) once confident, remove all of the users from the Azure AD list, including the current Administrator .. using the new Administrator.
4) once relieved of the controls, add a local user to the owner's computer that will act like all the others.

If there's a better way, I'd love to know what that might be.  But, I'm rather doubting there is at this point.
Thanks all!  Stay tuned for my related question next...