Possible, but not straightforward – and Microsoft really pushes the account route
On some Windows versions, disabling in the system firmware can automatically trigger an exit from S Mode. remove s mode without microsoft account
If you are setting up a new computer and want to avoid signing in initially (to create a local user first), you can bypass the network requirement. Note that you will still need to eventually sign in to the Microsoft Store to disable S Mode. Possible, but not straightforward – and Microsoft really