Dedicated Application Pool Identity
HC creates dedicated Application Pool with Network Service identity, According to Microsoft Network Service is less secure than default identity which MS recommend " ApplicationPoolIdentity ". HC Should change the implementation and follow the recommendation of MS in the light of below explanation.
According to MS
ApplicationPoolIdentity – By default, the Application Pool Identity account is selected. The Application Pool Identity account is dynamically created when an application pool is started, and therefore this account provides the most security for your applications.
NetworkService – The Network Service account is a member of the Users group and has user rights that are required to run applications. It can interact throughout an Active Directory-based network by using the credentials of the computer account.