Protected Users is a group introduced in Server 2012 R2 for "better protection against credential theft" by not caching credentials in insecure ways.

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Members of this group have non-configurable protection applied. In order to use the Protected Users group, PDC should be running with a minimum of Windows Server 2012 R2 and the client computers should be running with a minimum of Windows 8.1 or Windows 2012 R2.

A user added to this group:

If the domain functional level is Server 2012 R2, following DC protections are available:

To be used, Protected Users group needs all domain controllers to be at least Server 2008 or later (because AES keys).

<aside> ⚠️ Not recommended by Microsoft to add DAs and EAs to this group without testing "the potential impact" of lock out.

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No cached logon → so offline sign-in is no longer supported. Having computer and service accounts in this group is useless as their credentials will always be present on the host machine.