Microsoft site changed my username and password - recovery?

I have several computers and a Office 365 home subscription that allows me to use Office on 6 pcs. I have 365 installed on 3 computers, and was trying to install it on my wife's computer. Let's say my wife's user name was "Sally". When I logged into my Online Account (for example, "JSmith") from account Sally to download Office, there were a couple of problems. First, the Office site was malfunctioning. MS help told me to try again in a few hours (I'll be doing that today).

But something far, far worse happened. When I logged into the MS website, somehow their process CHANGED THE NAME OF MY WIFE'S ACCOUNT TO JSmith. And assigned JSmith's default directory to c:/user/Sally. And changed the password of my wifes' account to the one for JSmith. WTF????

Now, thanks to Microsoft, I'm spending time fixing software. Again. I'm fine with there being a JSmith account on the machine. What I want to do is to create a "c:/user/JSmith" directory for that user, and redirect the JSmith account to point at that directory. Then I want to recreate a user Sally, pointing to her old files at" c:/user/Sally".

One way of doing this would be to just rename the JSmith account back to Sally and hope that this did not break the current link to c:/users/Sally. I could then change the password back to Sally, and then just create an admin account called JSmith. Will this work? Any danger of Windows "helping" me by wiping out the current "Sally" directory? Also, if I change the name of the account that MS changed, will that affect the info in Appdata, or in Outlook.

The other way of doing this seems to involve copying large alphanumeric strings from a cmd window into regedit. Not really thrilled about that.

This is the second time that logging into the windows account f'ed up my accounts. The last time, it changed the PW on my main work computer - nearly a disaster. WTF would they do stupid stuff like this?

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This gets worse: the account now pointing to my wife's files is logged into by logging into my MS account, which means I can't just change the name on the local machine. I'd have to change the MS account name and this would mess up my other three computers.

So can I copy all of the files in c:/users/Sally to a new directory c:/users/JSmith and then change the user account to point to JSmith?

Microsoft's approach seems intrusive, opaque, damaging to data... What a cluster ____.

I have never heard of Microsoft changing a user password. Really.

What happened was this. I was logged into a local account (call it "Sally" - my wife's account). I used a browser to log into my Microsoft account to download Office 365 ("JSmith", if you will). When I logged off and tried to log back in, "Sally" was not an option. I could only log in via "JSmith" using JSmith's password. And "JSmith, once I was in, pointed to the default directory and profile c:/users/Sally. I assumed that MS had changed the account name and PW.

I'm still no sure how this works, but when I went to Settings>Accounts, I could "use a local account" to log in, and when I clicked that, it only offered the user account "Sally".

So MS didn't change passwords or account names, it merely obscured the local account using the MS account. Pretty messed up if you ask me.

Anyway, I used the local account Sally to create a real MS account on the machine. Now I can log in via Sally (locally) or via JSmith (via MS account). MS claims all kinds of advantages to the latter, but their attempts to force me to use an MS account have poisoned me. I see no advantage whatsoever to logging in via my MS account. And doing the latter caused me enough confusion to cost me half a day of work.

Guys, you're not reading the details or more likely I'm not making them clear. What I'm saying is

1) I log into a local account, Sally.
2) To upgrade Office, I log into my MS account using the browser. Different name, "JSmith", different PW
3) When I log out of the machine and try to log back on, "Sally" is not listed as an account choice. "JSmith" is.
4) If I log in via JSmith and select "Log in via a local account", my only choice listed is "Sally".

The same think happened on my work computer. Unfortunately, it has a local account with the same username as my ms account. So when I tried to log back into my main machine after upgrading Office, my local account name popped up and my local account password didn't work. I was able to log back in using my MS account PW.

So the local account "Sally" is not changed when I log into an MS account, she's just obscured by that MS account.