Solved Cannot switch to a Microsoft Account, error 0x80070005

In Windows 8.1, when trying to change from regular password to Microsoft Account, in the end of the process (I pass it all the way to the last step) I get the message:
"Some settings are managed by your system administrator" and code 0x80070005.
I have Administrator account (there is only one account on the computer)

I bought a computer that was used in the store (last item). Apparently they have put some protection that limits changes (Group security?), and did not remove it when I took the computer.
I don't have "pro" so I don't have Secpol.msc .

Please help how to remove these limitation, and restore the default settings?

Thanks,
Oron

Hello Oron, and welcome to Eight Forums.

Since this is a used computer, it may be best to reset Windows to start fresh. This way you could setup a Microsoft account during the reset.

I have been using this computer already for 1.5 months and have many things installed ..... So I am not so excited to go for a clean computer reset.
Can you direct me how to send you my Group Policy Setting so you can check if there is something relatively simple to edit there?

Is it possible to just restore default Security Policy settings of Windows 8.1?

It would be much more difficult to find out what policy may have been manually set in the registry.

Are you able to create a new user account on the computer as your Microsoft account instead of trying to switch your current account?

http://www.eightforums.com/tutorials/5536-user-account-add-new-user-windows-8-a.html

The new user was also blocked the same. Apparently it is a setting for all users or the machine.
I will take this actions now:

Go to another branch of this store chain (I bought it in an airport duty-free), to ask them if they know what they set up there or to call asking the original computer store. If problem is corrected then I will report back here what was the solution.

I look forward to hear what they say.

I solved it!! (in the computer store actually no one remembered what they did....)
I used SecPol (available only in Windows 8.1 Pro, so needed to invest $135 to upgrade from 8.1 non-pro).
There is a security switch to "block Microsoft accounts". Below are the images of the before/after settings. Then switching to Microsoft account went fine .

Thank you for posting back with your results Oron.

For anyone else with the same issue, you can use OPTION ONE below to allow Microsoft accounts to fix this without having to upgrade to Windows 8.1 Pro for Security Policy.

http://www.eightforums.com/tutorials/8085-microsoft-accounts-allow-block-windows-8-a.html