Interesting. Thank you for the update. In that case, here’s what I’d recommend as the next steps.
Step 1. Create a new local Windows account and test
Go to Settings > Accounts > Family & other users > Add someone else to this PC.
Create a local account, sign in with it, then open Microsoft Store and try signing in there.
If it works, that confirms the issue is with your original Windows profile.
Step 2. Completely remove and reinstall the Microsoft Store app
Open PowerShell as an administrator and run:
Get-AppxPackage -allusers WindowsStore | Remove-AppxPackage
Then reinstall it from the Microsoft Store installer page using your browser.
Step 3. Open Credential Manager again and clear every entry related to
MicrosoftAccount
XboxLive
Microsoft Store
Then reboot and retry.
Step 4. Test with Windows in a clean boot state
Press Windows + R, type msconfig, go to Services, check Hide all Microsoft services, then click Disable all.
In Startup, disable all entries. Reboot and try again.
This rules out third-party interference.
Step 5. If nothing else works, I recommend performing an in-place upgrade. An in-place upgrade is a process that updates the device to the latest version and resolves many issues without deleting any files. Usually, it is used to repair corrupted system files, apps, and even incompatible drivers on the system.
Here's how.
Go to the official Microsoft page:
https://www.microsoft.com/software-download/windows11
Under "Download Windows 11 Disk Image (ISO)," select Windows 11 (multi-edition ISO) and click Download.
After downloading, right-click the ISO file and select "Mount."
Open the new virtual drive that appears and run setup.exe.
On the installer screen
Choose “Keep personal files and apps” when prompted.
Follow the on-screen steps to complete the installation.
This process can take up to 1 hour and may include multiple restarts. After it completes, Windows will be refreshed while keeping all your data intact.