Hello
That's correct, if your Windows is Home edition, you cannot create a Windows user with a business account. It supports personal or local account only.
However, if your end goal is to use the Msft 365 that's associated with your business account, you do not need the Windows user to be business account to do so. In fact, if this is a personal device, I always recommend against it. Using business email on a Windows user is common practice for organization owned/managed devices, so that organization admin/IT can push group policies to regulate it remotely. They are really not suitable setup for personal devices.
To use your Msft 365, If it hasn't installed already, please go to https://www.office.com
Sign into the business account you used for the subscription. Click on the apps on the left.
Then on the upper right, click on "Install apps". This will now download the installer file. Once downloaded, click on the file to install. It will install the Desktop version of the apps for you then.
Then for each app, just go ahead and sign into your business account and your apps should work.
As for OneDrive, if you already have OneDrive set up with a personal account now, then just click on the cloud icon on taskbar, go to Settings > Accoutns, add an account, and sign into the business email credential, and you should now have a separate OneDrive folder and icon just for the business account.