Nico is correct that server is an Asset type. I would suggest creating an asset or importing the asset, with the asset type server for this inventory device. You can then link the asset to the Inventoery device to trace it that way.
The Inventoeyr device dropdown is also NOT one of the customizable dropdowns in FNMS. The full list can be found in the system reference guide. I have linked the system reference guide for FNSM 2020 R1 below:
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@Flex-Jeremy's suggestion to track assets is a good practice, especially if you have some good hardware asset management practices in place. A couple of other options are:
Set the "Category" field on inventory device records to indicate what type of device it is.
Configure a custom property on inventory device records.
As noted in the other responses, the "type" field on inventory device records is a special built-in field that cannot be extended or used for identifying devices which are used for server vs non-server purposes.
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