The joy cons will be replaced with JoyPads that will feature a screen that can be used to interact with games. It can also kinda play games by themselves but you have to be near the main Switch-U system. Nintendo’s flagship game for the system will be 1-2-Switch-U.
I just did this the other day. For figure c you’ll see sign in options. With that you have the option for domain join. Do that and it simply runs you through creating a local user. No domain join or MS account needed.
This was done on W11 Pro so your mileage may vary on W11Home