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Trying to get a clear understanding of what makes a AD domain service account non-interactive and how this is done?

I require a service e account with "logon as a service" and "logon as a batch" for a service account on a IIS box.

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Wha is an interactive logon ?

An interactive logon to a computer can be performed either locally, when the user has direct physical access, or remotely, through Terminal Services, in which case the logon is further qualified as remote interactive. After an interactive logon, Windows runs applications on the user’s behalf and the user can interact with those applications.

Users can perform an interactive logon by logging on to a computer using a local user account or by using their domain account.

Please read that blog about Managed service account. https://blogs.technet.microsoft.com/askds/2009/09/10/managed-service-accounts-understanding-implementing-best-practices-and-troubleshooting/

The Windows Server 2008 R2 AD Schema introduces a new object class called msDS-ManagedServiceAccount. Create an MSA, examine its objectClass attribute, and notice the object has an interesting object class inheritance structure:

Computer

msDS-ManagedServiceAccount

organizationalPerson

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User

The object is a user and a computer at the same time, just like a computer account. But it does not have an object class of person like a computer account typically would; instead it has msDS-ManagedServiceAccount. MSA’s inherit from a parent object class of “Computer”, but they are also users. MSA objects do not contain new attributes from the Win2008 R2 schema update.

If you ask as you wish to make a service account, please see:

For your question, if a managed account is not what you look for, you can create a non-interactive account by creating a GPO that set that; Computer Configuration/Windows settings/Local Policies/User Right Assignement, and you deny the user account the Log On right. (https://docs.microsoft.com/en-us/windows/security/threat-protection/security-policy-settings/deny-log-on-locally). That way that account will only be able to be used for services

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