|Distribution Points can be created on either server site systems or server shares. The main reason for you to create a share on a server and defining that share as a distribution point is that this allows you to choose a specific drive where Configuration Manager will create and write the support files for the distribution point role. This is done by creating a server share on the site system and directing it to a specific drive on the computer. You can then designate it as a distribution point. This is the only site role that can be created on a server share.
It is important to note, however, that if you use a server share as your distribution point, Configuration Manager will not create a data discovery record (DDR) for that site system. Without a DDR, the Heartbeat Discovery method will not monitor the health of the site system. If you do need a discovery record for a distribution point that you’ve placed on a server share, create the site system as both a Server Share and as a Server. Assign the distribution point role to the Server Share site system entry and don’t assign any site system roles to the Server site system entry. It is important to note, however, that configuring both as a distribution point is not supported, as it will cause consistency problems between the two distribution points.