Hello,
Is there any document for SharePoint 2016 monitoring? What permission is required from application side?
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SAM has out of the box Application template for SharePoint Server 2016.
Go to Settings -> All Settings -> SAM Settings -> Manage Templates and search for "sharepoint server 2016"
Then you should see the template. When you go to edit you will see the details:
There is also API Poller template shipped in 2020.2.1, but this is dedicated for Microsoft 365 SharePoint.