Devolutions Password Server has no requirements that would dictate which communication protocol is used, as well as many of the options offered to you by the chosen SQL Server instance. As long as the client workstation can connect to the SQL instance, Devolutions Password Server will run effectively. Please refer to the Microsoft Documentation in order to allow connectivity to the instance.
With Windows authentication, you must set the Application Pool identity to an account from the domain. We recommend creating a dedicated account for this purpose. Please refer to Configure Devolutions Password Server to use integrated security for instructions that need to be performed AFTER creating the Devolutions Password Server instance.