Can I use Kilz latex primer in a bathroom w/shower?

My fence is mostly horizontal rough wood with one section vertical planed wood and a vertical planed wood gate. It was painted by the previous house owners with a waterbased green stain. After 10 years in the house, It had faded a lot so I’ve repainted it with a Sadolin

New primed cedar shakes were installed. One coat of Benjamin Moore flat exterior latex paint applied. Within 1 hour–heavy rain came down. It was raining cream color (house was painted a beige color). No over hang, do we have to sand and prime? Question two- We had also oil primed