Hello, Tal Nuni
Welcome to the Microsoft community.
Thank you for your feedback. Are you still able to log into the screen? From your description it looks like there is an issue with the system configuration file. If possible, you can try to upgrade in place or create a new local account.
- Upgrade locally
Disclaimer: Let’s try performing an in-place install or in-place upgrade which will refresh your Windows files and operating system without removing files or applications. That being said, we always recommend that if you have important data, you should back it up before making large system changes. If you want to back up your data first, please do so. Once you are done backing up, you can follow the steps in the following guides:
How to run In-place upgrade in Windows 11 - Microsoft Community
- Create a new local account.
Select Start > Settings > Accounts, then Family and Other Users. Next to “Add another user”, select “Add account”. Select “I don't have this person's login information” and then on the next page select “Add a user without a Microsoft account”.
Enter a username, password, and password prompt, or select a security question, and then select Next.
Open Settings and create another account
Also change the local user account to an administrator account
Choose Start > Settings > Accounts.
Under Family and other users, select the name of the account owner (you should see “Local Account” below the name) and then select “Change Account Type”. Under “Account Type”, select “Administrator” and then select “OK”.
Create a local user or administrator account in Windows - Microsoft Support
I noticed that you can't use System Restore, can you send me an error message? Are you using the following method? (This method is applicable if you are unable to access the system)
Press and hold the power button to turn off the system, and turn it back on when it turns off. But instead of allowing booting, press and hold the power button But instead of allowing booting, press and hold the power button as soon as you see the boot logo on the screen.
Repeat this shutdown and start it until you see the Preparing automatic repair screen (it will take 3 or 4 attempts)
On the screen that appears, click on troubleshooting, then on advanced options, and then on system restore.
Choose a point in time before deleting files, and then restore them to that point in time.
Recovery options in Windows - Microsoft Support
I look forward to your feedback, which will help me pinpoint your problem.
Best Regards,
Aaron- MSFT | Microsoft Community Support Specialist