Yarn.ps1 cannot be loaded because running scripts is disabled on this system.

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On trying to run a PowerShell script from the PowerShell console, received this error message: “File C:\temp\GenerateRpt.ps1 cannot be loaded because running scripts is disabled on this system. For more information, see about_Execution_Policies at https://go.microsoft.com/fwlink/?LinkID=135170.”

Root Cause: This is due to PowerShell’s policy to prevent untrusted scripts which can affect your Server environment.

Solution for “cannot be loaded because running scripts is disabled on this system“:

To fix this issue, we have to set the execution policy, so that the PowerShell script runs on the particular machine. Here is how:

• Open PowerShell Console by selecting “Run as Administrator” and set the execution Policy with the command: Set-ExecutionPolicy RemoteSigned
• Type “Y” when prompted to proceed 

This in fact sets the registry key: HKLM\Software\Microsoft\PowerShell\1\ShellIds\Microsoft.PowerShell
Policy parameter takes below values:

1. Restricted – No scripting allowed
2. Unrestricted – You can any scripting
   • No signing required
3. Remote signed – good for Test, Dev environments
   • Only files from internet need to be signed
   • This is the default setting
4. All signed  – local, remote script, it should be signed.
   • user must agree to run script

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PowerShell Execution Policies

PowerShell offers more execution policies than just the two mentioned previously.

In total, PowerShell offers seven different execution policies:

1. AllSigned

With the AllSigned execution policy, scripts that are signed by trusted publishers run without any intervention.

Scripts signed by untrusted entities will cause a prompt allowing you to run the script.

2. Bypass

With bypass, nothing is blocked from running, and no prompts appear with warnings.

3. Default

The default policy varies depending on the operating system:

For Windows clients, the default policy indicates Restricted.

For Windows server operating systems, the default policy indicates RemoteSigned.

4. RemoteSigned

With the RemoteSigned execution policy, any script downloaded from the Internet must be signed by a trusted publisher.

Local scripts can run without a digital signature on the script.

5. Restricted

This configuration allows you to run individual PowerShell commands but blocks the running of scripts including modules.

6. Undefined

This setting indicates that no execution policy is configured (for the current scope).

7. Unrestricted

This execution policy allows the running of unsigned scripts but warns the user when running scripts that are not from the local intranet zone.

PowerShell Execution Policy Scopes

The above PowerShell execution policies can be configured in five different scopes.

The scopes take precedence, from top to bottom, in the following order:

1. MachinePolicy

This scope is configured by the computer policy in a Group Policy Object (GPO).

It affects all users on the system.

2. UserPolicy

This scope is configured by the user policy in a Group Policy Object (GPO).

It affects only the users targeted by the GPO.

3. Process

This scope only affects the current process (PowerShell session).

When the current process is closed, the configured execution policy no longer exists.

4. CurrentUser

This setting only affects the current user and is persisted across reboots in the HKEY_CURRENT_USER registry hive.

5. LocalMachine

This setting affects all users on the system and is persisted across reboots in the HKEY_LOCAL_MACHINE registry hive.

How to Check Why Running Scripts Is Disabled

As execution policies can be set on different scope levels you need to review all of them to understand why scripts are being blocked on your system.

Use the following command to list the PowerShell execution policies configured for the various scopes:

How do I enable a running ps1 script?

Why is running scripts disabled on this system?

How do I enable running scripts in Windows 10 PowerShell?