Hi DK. I'm I'm Greg, 10 years awarded Windows MVP, here to help you.
Go into Settings > Accounts > Your Info and confirm the email address at the top is the same one.
Then look below for what links are present. Is there a link to Sign in with Local Account Instead, which is how you'd convert to Local account?
Is there anything about signing in across all Apps?
Is there a Verify Account link which can do strange things until it's completed?
I this is normal then why you'd get that prompt in Apps & Features is very strange. This is how other Users often get tricked into signing in when there is a Local Account only, until it was slightly reworded several years ago we'd see cases almost every day of other users playing games converting the owner's Local Account into their MS Account.
But it should never prompt to convert to MS Account where there already is one. That can mean account or Windows corruption. If this is clearly what's happened then run System File Checker/DISM in WIndows 11:
https://www.elevenforum.com/t/use-system-file-c...
Based on the answers and results you post back I may have other suggestions.
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