Failed to sign into Microsoft account from Windows 10

I have problem signing into Microsoft account from my local account on my machine. This used to be my work laptop I have bought it after I left company. I could sign in on my domain user without any problems. Since I left domain I lost this account.

I am trying to "Sign in with Microsoft account instead" option in Accounts->Your info. After I enter my Microsoft account credentials and insert my local user password I get message "Oops something went wrong. Whatever happen it was probably our fault". Good one Microsoft.

Also similarly when I try to add account to Calendar app I end up with same problem, but here I got more information: "You will need the internet for this. It doesn't look like you're connected to the internet. Check your connection and try again. 0x800704cf". This led me to check Network troubleshooter and this error came up:

Your computer appears to be correctly configured, but the device or resource (www.microsoft.com) is not responding Contact your network administrator or Internet service provider (ISP) Completed Windows can't communicate with the device or resource (www.microsoft.com). The computer or service you are trying to reach might be temporarily unavailable.

I have tried many ways how to fix this. (Flush DNS, reboot router etc..), but I am pretty sure that my problem is not with my internet connection. It works perfectly fine, also note that I was able to check this with 2 internet providers with same result. Also another thing is, that this works perfectly fine with other devices in our household.

For me it looks like system don't see microsoft.com. Only thing I am able to work with is One drive.

I am pretty sure I would be able to fix this by resetting Windows 10, but I don't want to loose my installed programs (and licenses).

Any advice will be appreciated. I really ran out of options.

After doing many many thing, only thing that helped was resetting PC. It always does help.