Preparing VMware ESXi hosts

we are working with the customer to integrate their VMWare centre (ESXi platform).
On the admi guide I find this:

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Safeguard for Privileged Passwords supports VMware ESXi hosts.

IMPORTANT: Safeguard for Privileged Passwords can only manage local users on a VMware host.

To prepare a VMware ESXi host for Safeguard for Privileged Passwords

  1. Use an existing account or create a new account as the service account on the asset and assign it a password.

    The default administrator account is suitable.

  2. Grant the service account the privileges required to set user passwords using the web management API.
  3. When adding a VMware ESXi host to Safeguard for Privileged Passwords:
    1. Specify the network address.
    2. Specify port 443 as the HTTPS port.

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It is not clear what types of entities can be managed. USERS? Privileged accounts? Local or domain administrative accounts? Local or domain USERS? It confuses me.
Is password rotation managed?

the customer needs to integrate this platform to manage AD ACCOUNTS to access on it.
I need clarity because from this.

Please help me