Sounds like normal expected behavior. You could try adding a new local account, then associate the microsoft account with the new local account.
--please don't forget to upvote
and Accept as answer
if the reply is helpful--
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Recently i tried installing windows 11. Everything went well untill i noticed something. I have enter my username during installation and logged in with my Microsoft account. Username i entered was "Srikanth" but the profile folder create with name as "sreek" which is first 4 letters of my Microsoft email. It is so weird. Now im not able to change name anymore. I tried creating a local account, switch to the created local account and tried to rename my main profile name. Its not allowing me still. Is there anyway i can properly name my profile name ?
Sounds like normal expected behavior. You could try adding a new local account, then associate the microsoft account with the new local account.
--please don't forget to upvote
and Accept as answer
if the reply is helpful--