After completing a fresh Windows 11 installation without saving any files from the previous installation, this error has not appeared even though the sign-in service is running.
Installing Windows 11 22H2 fresh requires signing in with a Microsoft account, but after setting up the system, users can change the account into a local one, thus avoiding having to put in a PIN or password. The topic error has not occurred for me so far with either account type, so that's a positive. (Having to sign in to my local system with an MS account for the first boot is annoying and seemingly unnecessary.)
On a side note, I cannot recommend Windows 11 22H2, because Microsoft has made so many unnecessary features and settings default. I have spent over three hours so far disabling, uninstalling, and changing settings that I do not want. For example, by default, essential folders like Documents and Desktop are in the OneDrive folder, so if you do not want to use OneDrive, you have to uninstall OneDrive, Unlink your system from OneDrive, and reassign those folders' locations back to their normal place, which ironically is called the default location. There is a multitude of similar annoyances in this version. I would expect this sort of thing if I'd purchased a Dell-built PC, but this is just the standard operating system. Sad times.