I have web application running successfully in different environments. Currently I am using the same service account for both application pool and 'Physical Path Credentials' of the web application.
Now I am planning to use gMSA instead of service account. gMSA account has all the required permissions to the network path. I was able to change application pool to use gMSA successfully. However when I try to change 'Physical Path Credentials' of the web application, I am getting 'The specified password is invalid'. Note that when I enter gMSA account, the password field is greyed out. I can't even enter password.
I have searched for solution. But most of the solutions are related to application pool.

I contacted Microsoft support team. According to them it is not possible to use gMSA for 'Physical Path Credentials'. The reply I received from Microsoft support is as follows:
"we can only configure gmsa account for app pool but we cannot configure it for physical path. It is a by design behavior."