You're actually overcomplicating it. You don't have to use the account to log into windows, you don't have to log into edge. You just add the account under "email & accounts" in windows settings. You can then choose to use that account or not for various things. Outlook detects it automatically.
But for work, if you work for a large company, I don't understand how they would allow an offline/local account to authenticate you to company resources. So like I said, the authentication structure is flawed, if you do not want your MS account known to anything except outlook, then yes you're going to have to hack things a bit and your credentials will be lost from time to time after updates or every x days.
MS for better or for worse has moved to the ecosystem model, which is why they've made it so difficult to use an offline account in windows. As far as they're concerned, you should be using your MS account to log into windows which then will authenticate you to things like email, onedrive, optionally edge, and if your company is modern managed, your domain and resources as well. Apple and Google started the trend, MS jumped on board. Same with forced updates.
But then in the same message you say your phone is logged into your google account (which you don't really have a choice, not if you want to actually use most of the features of the phone) - so why no paranoia there? It is possible to use your phone without a google account, but it will be inconvenient and glitchy, exactly what you're seeing with MS.