Hello Braulio,
Thank you for posting question on Microsoft Windows Forum!
Based on the issue description. Well! Since Windows makes a clear distinction between personal Microsoft accounts (MSA) and work/school (Azure AD) accounts. The option “Sign in with a Microsoft account instead” on Windows 11 will only accept personal Microsoft accounts, not work/school accounts. In other words, it is expected behavior that trying to convert a local account to use a work (GoDaddy/M365) account there will fail. In addition to that, Microsoft 365 accounts purchased through GoDaddy use a special federated Azure AD setup. GoDaddy “federates” your domain and tenant through GoDaddy’s own identity service. That means user sign-ins are routed to GoDaddy’s portal (like sso.godaddy.com) rather than directly to Azure AD.
Hence, it is normal that your GoDaddy-hosted business email (an Azure AD/federated account) cannot be used directly as the Windows sign-in account via the regular MS account conversion. Windows will report that the account “does not exist” or that a work/school account can’t be used there.
If your GoDaddy tenant has been upgraded to full Microsoft 365 Business Standard/Business Premium (not the “from GoDaddy” variant), you can join the PC to Azure AD by going to Settings > Accounts > Access work or school > Connect > Join this device to Azure Active Directory. This makes your business account the primary sign-in. Otherwise, continue signing in to Windows with a personal/local account, and use the business account only for work applications. For example, sign into Windows with a local or personal Microsoft account, and then add your GoDaddy work account under Settings → Accounts → Access work or school to access email, Teams, OneDrive.
You can consult the following links for further reference.
- https://support.microsoft.com/en-us/accounts-billing/work-school/join-your-work-device-to-your-work-or-school-network
- http://support.microsoft.com/en-us/accounts-billing/manage/change-from-a-local-account-to-a-microsoft-account-in-windows
Hope the above information is helpful!