Currently the Password Policy Manager (PPM) will not support LSA being enabled on DCs. The component will fail perform its regular functions (e.g. interact with PM’s password policies).
An enhancement request (TF00106448) has been created detailing the feature above.
Disable LSA from the DCs running the PM’s Password Policy Manager (PPM).
The product team will evaluate the request and this feature may become available on a future release of the product.
Please refer to this article for updates or contact support referencing the Enhancement Request ID: TF00106448.