They're only overblown in that I haven't seen anything to suggest it is any worse than Windows 10, which was already horrible from a privacy perspective.
I remember people saying that windows 11 requires internet connection and microsoft account. Not sure if it's true.
There are workarounds but when installing you really need to choose 4 times that you are good with a local account. Every time the question is phrased differently.
I don't believe it is technically true, perhaps with Win 11 home? But the process is full of dark patterns and opaque enough that you could argue it is effectively true.