The specified user username is a local account. Local accounts should only be used in stand alone mode error in SharePoint 2013

This error comes in the configuration wizard where it ask for Database server name, database name, domain user name and password. The error comes as: "The specified user "Domain\UserName" is a local account. Local accounts should only be used in stand alone mode”.

To resolve this issue open SharePoint 2013 management PowerShell and run New-SPConfigurationDatabase command.

Once you run the command, it will ask you about the database name, database server name, farm credentials and Passphrase as shown in the fig below:

Then it will create the database, Then you can start the SharePoint Configuration wizard again. Then it will open the Modify server farm settings. Here it will autopopulate the Database server and Database name. 

Here select "Do not disconnect from this server farm" option. check the fig below:

Click on Next and the installation will complete.