It's fairly common to see the identity for an IIS application pool changed to a domain user account. The following image shows three application pools, the DefaultAppPool has the default settings, the www app pool has a Managed Service Account specified, and the wwwDev app pool has a standard domain user account specified:
When a standard user account is specified, the password is entered as shown below:
I've used what you would think is a super secure password, generated by KeePass:
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