How to convert from microsoft account to local account

I have lost access to my microsoft account, as it was hacked. Naturally, microsoft support was useless and told me that it was unrecoverable, and that if i wanted the games i'd have to rebuy everything etc etc... Anyway, long story short, now all i see is the attached image when i try to change to a local account. On top of this, microsoft family safety application will not close unless i sign in, which i cannot do, as the account was hacked and now it says the account does not exist...

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