No, Deployment Manager does not support using the Pega repository type to store application artifacts as part of the pipeline deployment. The Pega repository type currently is only supported the Rebase feature in the platform, and in the future the Rebase feature is also likely to move away from the use of the Pega repository. There are a few reasons why Pega repository should not be used
The Pega repository stores all the artifacts in the Pega node temporary folder. Each node has it's own temporary folder or working directory to store various caches or other session specific data. This node workspace is not guaranteed to be persistent and can easily be wiped out on restart or when the caches are cleared.
Pega repository only really works for single node deployments, where there is only one working directory involved. Multi node deployments could end up in a situation where each time a requestor is authenticated it could be in a different node and thus the artifacts published will not be visible.
Lastly, it is the practice at most companies that lower environments are not allowed to connect directly to higher environments as a general SecOps workflow. Using a Pega repository will force that a Pega environment (likely) a lower one will have access to higher environment breaking this policy.
If you are looking for a quick and simple way to get started with Deployment Manager without using Artifactory, S3 or other purpose specific artifact management repositories, just use the File system repository, where you can have a network share that is accessible to al the environments involved.