My comment was in regard to the average PC user. The kinds of folks who would never install an operating system and would likely agree to use Edge while signed in to their Microsoft account.
Microsoft has also been pushing hard for Recall and recording all local activity forever. Not impossible to imagine that anything looking like a home address “somehow” gets ingested in the telemetry.
A bypass existing is actually not good because that's how the frog is boiled. Ignorant users get an account while power user are placated for now. Then at some point the bypass is removed and when power users speak up they will be told shut down by all the drones with "you have needed an account for years, why are you throwing a fuss now".
It takes zero effort to bypass that with Rufus, if you set up your own pc.