My guess is that you would need to modify auth/mnet/auth.php:confirm_mnet_token() to fetch/create users using the local mnet host ID instead of the remote host ID, and modify either lib/moodlelib.php:get_complete_user_data to ignore the $mnethostid parameter, or auth/mnet/land.php to call get_complete_user_data without the $mnethostid parameter. I haven't tried it, but that's where I'd start looking.
Moodle networking (MNet)
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