My favorite method is to use an unattend.xml or otherwise automate setup.
As much as I don't like it, the vast majority of users should use a Microsoft account as the logon on their primary system. The security is much better, aside from AAD that underpins it being more secure than almost anything else, it's also not throwing your password all over the place as a local account will do if it discovers any shares (encryption downgrade is still a thing). Add in the TPM based Windows Hello security and Bitlocker (recovery of which does normally work on Home), and it's very hardened. If you're worried about privacy, sign up for O365 (the family plan is super cheap for what it gives you) and your data is now stored such that Microsoft doesn't look unless there's a warrant, which any cloud storage provider is just as susceptible to. Microsoft also makes a point of respecting your local privacy laws by leveraging their global Azure datacenter network, so an EU user has their data stored in the EU and subject to EU law, US is kept in the US, and so on. There are even further steps you can take if you set up as a business account.
This group isn't the average userbase though. If you're worried about physical security and privacy, chances are you're also worried about cybersecurity and privacy, and are willing to put in the effort to make it work for you. I certainly have, it's not always easy, especially if you're a big storage user or manage multiple sites, but it can be made to work. For any cloud service, always read and understand the T&C and PP, and if they're not in your country of residence, always be suspect - an EU resident using a US cloud service would be subject to FISA, for instance.
On setup of a new PC, MS loves to insist and make it difficult to set up local account because they want to keep track of you, send you pertinent stuff, etc. It's all about money and YOU are the sucker if they lure you into creating/using a MS account.
If you use the free tier, you're the product. Once you pay for it, that's no longer the case. They still track you using other means, but can't get into your personal user data. Microsoft isn't alone in this, nor are they the best or the worst company who does it, but they are the most consistent in where the line is drawn both domestically and globally. And there's a reason I don't use Google products even if they're the paid version.
