Noted at https://answers.microsoft.com/en-us/windows/forum/windows_10-update/i-dont-want-a-pin-number/902c5b3d-42d4-4fc8-b34e-71200e0b362d
As far as I know, if you use that login method, you will be asked for the PIN. This is not a bug.
This update forces you to create a pin number. It will force to use it all the time and not save it.
In the earlier versions of Windows you had the options to just hide the update and the system will not install it. Can this be done if so how?