What won't work with a local account? HWID linked to MSA will also work without using the MSA to login. At least at my testmachine.
I guess this is known and little of topic. I wasn't able to update (Fresh TH2) with MAK Key (5 Activations). It said "wrong" Edition but it's not for sure. Yes, but you have to login at least once with your MSA account to register the device to your account (for at least the new trouble shooting stuff)
You cant. If You do the "ticked" thing You will end up with the ticket to activate your windows 10 but the ticket will be populated only if its sent to microsoft servers by windows 10 ecosystem.