This is no longer correct with the latest 22H2 December update. In order to circumvent this now requires getting to the command prompt (Shift+F10) during install and issuing a command to bypass the requirement.
It always created local login; if you really wanted to join AD, you had to use this account to log in and join manually. Actually, pretty annoying, desktop Linuces are capable of AD join straight from the OOBE.