This issue is not exclusive to users who have only a local account.
I have this error(s, they are increasing exponentially!) as well and I use a Microsoft account to log in.
Specifications: Windows 11, Version 21H2, build 22000.856
I also confirmed that the process responsible for the error is wlidsvc (Microsoft Account Sign-in Assistant).
The only difference in my error log is that the error occurs at line 138, rather than 128.
How can you disable the Sign-in Assistant?
Thank you for confirming that you're seeing this with a Microsoft account.
My main reason for mentioning that I use a local account and the fact that I minimize the number of apps logging into my Microsoft account, is to stress that this allows me to disable the Microsoft Account Sign-in Assistant with few adverse effects.
You disable the service by opening SERVICES.MSC, locate Microsoft Account Sign-in Assistant in the list, right click and select right-click > Properties > Startup type > Disable. You can also stop the service right there, but I prefer restarting Windows after making such changes.
For me, the only adverse effect of disabling the service is that Edge no longer signs in and syncs, which I can live with. Until MS fixes this, I will just temporarily enable the service once a month in order to sync my Edge settings, before accepting Windows Updates, then disable it again after the updates if the error is still present.