Is this a surprise? I assumed everyone's experience of Microsoft accounts was something like this. Every single detail seems designed by someone who read Kafka and took the wrong lesson out of it.
Just accepting every horrible thing in the world must be so sad.
This sort of scenario. Or a million others.
Some of their designs are downright malicious (like locking the email account until you give them your phone number), more often it's amazingly bad software/UI, and sometimes they'll ruin your weekend by rolling out a Windows update without asking which wipes your partitions or throws bluescreens on boot.
I decided a while ago it's not worth it for me and stopped using as much MS related stuff as possible, and I'm glad I did.