Verify that a supported version of Windows PowerShell is installed. For more information about the versions of PowerShell ...

Verify that a supported version of Windows PowerShell is installed.  For more information about the versions of PowerShell that are supported with Microsoft Dynamics 365 for Operations, go to http://go.microsoft.com/fwlink/?LinkID=165377.

If PowerShell is already installed, verify the version. Click Start > All Programs > Accessories > Windows PowerShell and type Get-Host. Also, verify the execution policy for running scripts. Type Get-ExecutionPolicy -List, and make sure that MachinePolicy and UserPolicy are set to either undefined or RemoteSigned. You can change these policies via Group Policy settings.