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Are there any settings?

There are currently no settings for Manage Tags Capability. Once the plugin is activated, it will modify the tags menu on posts for users without manage_categories ability.

To modify the default settings for the manage_categories ability, you can add a plugin like Capabilities Manager to turn the manage_categories capability on and off for specific user levels.

Are custom post types supported?

Yes. If you want the plugin to affect a custom post type, just add this code to your theme or plugin:

function add_mtc_post_types( $types )
{
    $types[] = 'your-post-type-slug';
    
    return $types;
}
add_filter( 'rd2_mtc_post_types', 'add_mtc_post_types' );