You can specify a non‑administrative Proxy user name and Proxy password to use when managing the password for the selected system. If you specify a proxy user account, you can also choose to have the password for that proxy account managed by the Privileged Access Service. If you don’t specify a proxy user, the account credentials used to log on are used to manage passwords and validate accounts.
You should note that the proxy user account is only used for password management and account validation. It is not used for opening remote desktop sessions.
Note: If local account password reconciliation (LAPR) policies are enabled for domain-joined Windows systems, the proxy account settings are disabled and ignored if already configured.