Both `applicationHost.config` and `web.config` can be used when managing IIS applications with CyberArk, and the choice between the two generally depends on the specific use case.
`applicationHost.config` is a server-level configuration file that provides settings for the entire server and is usually used for application pool identities or settings that should be applied to the whole server.
On the other hand, `web.config` is an application-level configuration file that provides settings for a specific application or directory. It is used for settings that should be applied to a specific web application.
The reason for using `applicationHost.config` over `web.config` or vice versa can be based on the scope of the changes you want to implement.
If you want to change the configuration for all applications on a server, `applicationHost.config` would be more suitable. In contrast, if you want to change the configuration for a specific application, `web.config` would be more appropriate.
However, it’s important to note that the use of `web.config` for storing sensitive data like credentials is not recommended due to security concerns. It’s considered a best practice to retrieve such data securely at runtime from a secure source like CyberArk, rather than storing it in the configuration file directly. So, in the context of credential management, the application code can be designed to pull credentials from CyberArk dynamically at runtime, providing enhanced security.