You’d think, but no. They expect everyone to have internet access during setup. If you don’t, then it just won’t let you move forward in the setup until you connect.

There was a workaround to enter the wrong credentials for a Microsoft account which would allow you to create a local account in the hopes that you would log in and then reset your password once in Windows. There was also a workaround using a bypass oobe (out of box experience) command in Command Prompt. Without reading this article, I’m assuming this blocked one or both of these methods.