Can be done using ADAC or PowerShell. We need to set all values that need to be set, including those that might be coming from domain.

ADAC

1. Click on Domain > System > Password Settings Container > New > Password Settings.
2. Set values as needed.
3. Under Directly Applies To, choose Add, type the name of the group to which the fine grained password policy, and then choose OK.

Powershell

Create policy

$policyParams = @{
    Name = "PasswordPolicy"
    ComplexityEnabled = $true
    LockoutDuration = "00:30:00"
    LockoutObservationWindow = "00:30:00"
    LockoutThreshold = "0"
    MaxPasswordAge = "42.00:00:00"
    MinPasswordAge = "1.00:00:00"
    MinPasswordLength = "7"
    PasswordHistoryCount = "24"
    Precedence = "1"
    ReversibleEncryptionEnabled = $false
    ProtectedFromAccidentalDeletion = $true
}

New-ADFineGrainedPasswordPolicy @policyParams

Assign policy

Add-ADFineGrainedPasswordPolicySubject PasswordPolicy -Subjects group1

references:

Create Fine Grained Password Policy (Step-by-Step-Guide) - Active Directory Pro
Configure fine grained password policies for Active Directory Domain Services in Windows Server | Microsoft Learn