Hi, I am Van. I'll be glad to assist you today.
When switching accounts from a local account to a Microsoft account and vice versa. In the verification process, the first prompt is to input the Microsoft account password. The second prompt, which asks for the current Windows password, refers to the local account password. If the PC's local account does not have a password or there is no local user account, just click next without entering any password. It should let you through and finish the process.
Otherwise, enter the local account password to proceed.
Please feel free to reach out if you require any further assistance. I'm here to help.