Install PowerShell v5 on Windows Server 2008 R2 or 2012 R2

Prior to updating to PowerShell version 5 make sure to be running the latest version of .NET Framework (.NET 4.6.1 as of this writing). See Checking .NET Versions.

Check Current Version of PowerShell
Run either $Host.Version or $PSVersionTable.PSVersion

Install latest version of .NET.

PowerShell 5 is part of Windows Management Framework (WMF) version 5 and can be downloaded from Microsoft (2008 R2 or 2012 R2). Select the correct download for your version of Windows Server and run the installer. After completion verify the version.

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