Event ID 4776 belongs to the Audit Credential Validation subcategory of the Account Logon category, and it is generated every time a credential validation happens through NTLM authentication. The provider is Microsoft-Windows-Security-Auditing, the channel is Security, and the event has existed in this shape since Windows Server 2008 and Vista (event version 0, no later revisions). You need the subcategory enabled for both Success and Failure to get the full picture, and most environments that audit account logon at all already have it on.
The event is deliberately thin. It carries four data values: the authentication package (always MICROSOFT_AUTHENTICATION_PACKAGE_V1_0, so it is a constant rather than a signal), the Logon Account whose credentials were checked, the Source Workstation the request claims to have come from, and the Error Code. Success events carry 0x0. Anything else is a failure and the hex value tells you why.
A few generation rules from Microsoft's own documentation shape how you read volume. The event also fires on workstation unlock, because unlocking a session re-validates the cached credential over NTLM. It does not fire when a domain account logs on locally at a domain controller console. And it only covers NTLM: a Kerberos logon leaves no 4776 behind at all, which is why a domain that has moved most traffic to Kerberos still sees a steady trickle of these events from the corners that have not.
Those corners are predictable. Local account logons always use NTLM, since there is no Kerberos realm for a local SAM account. Anything that authenticates by IP address instead of hostname falls back to NTLM because there is no SPN to request a ticket for. Old SMB clients, some network appliances, printers, RADIUS front-ends, and applications that were coded against LogonUser with a plaintext credential all end up here. Every one of those paths produces a 4776 on the authoritative machine, and that inventory of "who still talks NTLM" is itself a finding worth keeping.