People at LAN parties actually do log into their own Steam accounts, but logging the whole machine into a guest's Microsoft account feels worse. Then again, I haven't tried it, maybe it'll turn out convenient, if it lets people sync their settings between machines? Note that at the end of the party, all changes anyone made to any machine are wiped out.
That said it's definitely comforting to have Linux as another option if Microsoft makes Windows unusable for this use case!
This is all assuming you're not using a domain etc.. and have any of the myriad of other tools setup. We run lancache strictly for the fun-net segmented network.
So before each party I just have to install updates on one computer, like a normal person would. No need for a special cache. (Or arguably, the primary image is the "cache".)
Full details and code in this github repo: https://github.com/kentonv/lanparty/