In practice, there's some bugs around this. There's no way to force Windows to update your password when you change it via Microsoft; I went through the password change due to Microsoft locking my Microsoft account, and Windows didn't update the password locally until I played around with group policy settings (that I'd never touched before) for password expiry and signed in via PIN and rebooted a dozen times (over the course of about 2 weeks).
In practice, there's some bugs around this. There's no way to force Windows to update your password when you change it via Microsoft; I went through the password change due to Microsoft locking my Microsoft account, and Windows didn't update the password locally until I played around with group policy settings (that I'd never touched before) for password expiry and signed in via PIN and rebooted a dozen times (over the course of about 2 weeks).