Had a similar experience with a new laptop & win10 in October.
HP downloaded new patches for firmware & drivers, MS Win 10 decided it needed new updates - this all took about 2 hours to download (no fibre in the exchange!).
Rebooted PC & the log-in pin did not work. It insisted on PW & offered the MS Password as an option. System booted but then you have to go into delete the "old pin" & put in a "new one" - I used same pin & it did not object.
The pin number is stored, encrypted on the laptop, the MS Password is held on MS site.
No problem since but a bit unnerving on Day 1 when you are trying to get to grips with a new piece of hardware, a new operating system, new firmware & getting rid of the bloatware.
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