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Ah... if your database is large then Shield is going to exhaust the internal storage. Hence my advice up above how Shield is great for small/medium collections, but does not work for large collections.
Thousands of items = fine on Shield
Tens of thousands of items = not so fine on Shield
Hundreds of thousands = definitely will not work on ShieldBut as a pathway to a larger system, Shield as Plex Server is fine... and then in the future if you're all-in and have a large collection, you can create a new server elsewhere and repoint your clients and nuke the Shield server.
Nope... can be pointed at network storage.
Plex Server on shield defaults to external USB, but it's just Plex and can be configured exactly like a Plex Server anywhere else.
So long as there's an SMB share (Windows shared folder on the NAS)... it works.