How should choices be managed in a domain-separated instance?

Managing choices in a domain-separated instance requires careful consideration to ensure that the choices available to users are appropriate for their specific domain. Utilizing the "Configure Choices" option is the correct approach in this scenario. This method allows administrators to create, manage, and customize choices in a structured and controlled manner. It ensures that choices can be tailored to meet the needs of each domain without impacting other domains.

The "Configure Choices" functionality enables administrators to set visibility and access permissions for different users based on their domain, ensuring that users only access the choices relevant to their specific context. This process enhances data integrity and relevance in the application.

In contrast, direct database updates are not recommended, as they can lead to inconsistencies and potential data integrity issues. Allowing all users to edit choices would compromise control and can result in an unmanageable environment, where choices might conflict within different domains. Lastly, while the Application Configuration panel may provide various administrative capabilities, it does not specifically address the structured management of choices in a domain-separated context like the "Configure Choices" option does.