Here’s a good reason for why using a Microsoft account to login to Windows 10 may not be the best idea.
In addition to the privacy concerns involved with using a Microsoft account on your personal computer, it may also pose another risk for many users.
When you sign in with a Microsoft account when setting up Windows 10, which is the default recommended option when using Windows 10 Home or Pro editions, your computer’s password is then tied to the Microsoft account you signed into. This is the same password most users will use with an Xbox account, Outlook Mail (Hotmail), or Office 365 account.
The issue with using a Microsoft account instead of a local account is if your password is changed, that password will also update on any computers that are paired to the same Microsoft account once that computer is connected to the internet.
If an account is compromised however, users can find themselves locked out of their PC. If the account doesn’t have a recovery email or phone number associated with it, it can be difficult to recover the account entirely. Furthermore a Windows 10 PC cannot be reset without formatting the drive if the user doesn’t remember the password to the Microsoft account.
The setup for Windows 10 Pro allows the user the option to create a local account during setup, however Windows 10 Home no longer provides the user with any option to create a local account during the same setup process. The only way to avoid using a Microsoft account during setup with Win 10 Home is to disconnect from the Internet, after which the process will fall back to a local account.
Additionally you can avoid being required to enter security questions for password recovery by not entering a password during Windows 10 setup, and then adding a password to your account once Windows has finished setup.