No. The PolicyPak admin console does NOT need to be installed on DCs.

Let’s do a quick run-through of the components of PolicyPak and where they are installed:

1. PolicyPak Admin Console MSI: Install this on YOUR management station, usually Windows 10. As a rule of thumb, install this anywhere you have and use the GPMC regularly.
2. PolicyPak CSE MSI: Install this on the machines you want to manage using PolicyPak Software. Usually end-user computers, Citrix / TS machines, or anything that users actually log on to or use.
3. PolicyPak pre-configured Paks: These are COPIED in one of three places:
   3.1 Locally to YOUR management station machine,
   3.2 To the PolicyPak Central Store (video demo here).
   3.3 A share (video demo here).

Note: Point 3 is needed for PolicyPak Application Settings Manager (PPASM) only.

So, nothing is EVER needed to be installed on DCs. And nothing is EVER required to be “running” on DCs.