Computer did not boot windows 10 normally and went into attempts to Automatically repair which failed. Then when option System Restore from a restore point was attempted, System Restore asked to select account (only 1 in a list) with account name, after it was selected, it showed Microsoft online Account email address as a user name and asked for password. Correct password was entered but login was rejected. Computer is connected over ethernet and wifi connection was tried (disconnected ethernet) as well but login rejected as invalid.
Then went to Microsoft website from another computer and changed password just to ensure this is not a an issue for account login. However this did not help.
On this computer there was no local user account created, only Microsoft online account login was used. The System Restore shows correct email associated with this account. So does System Restore attempt to connect to Microsoft server to validate login or it stores password locally even for online account? In any case this functionality is not working. If online Microsoft account has changed from another computer how would computer that is not able to boot Windows get the update? Is it known Windows issue?
What is the workaround?