It means I have to sign in to windows: I have to deal with it nagging me to change my standard logon to a microsoft logon. I then have to worry about all the other apps and their permissions, privacy implications now and in the future.
I have to give my credit card details to microsoft. I can't easily take the software with me if I need to use another machine/laptop/tablet etc without having to, again, sign into windows in some way and have all of the above congnitave overhead *n machines. Hell even if I make another local user account for testing or whatever I can't even use your software as I again have to sign into windows even though its working for my main logon.
It all adds up to another thing that needs managing/thinking about, which pretty much takes the convienience of (your software, in this case) away.
If you wanted to make it restrictive and painful for your users, you have succeeded!