And guess what to blame, the Digital Certificate, because it’s not trusted. Thanks to this thread on Github.

Here is how to fix it:

Navigate to the following location:

%userprofile%\.vscode\extensions\ms-vscode.powershell-versionxxx\modules\PowerShellEditorServices

Right-click the file Start-EditorServices.ps1 and choose Properties.

Switch to Digital Signatures tab, highlight the digital certificate listed in there and click Details.

Click View Certificate, go to the Details tab on the dialog box that pops up.

Click Copy to File…, follow the wizard to save a file with .CER extension.

Now, open the Certificate MMC and import the saved .CER certificate file into the Trusted Publishers Certificate Store, either in the User account or Local Machine.

Re-open Visual Studio Code and you should be able to run any PowerShell scripts by now.

Setting up VS Code for PowerShell turns out super easy.

First, download VS Code from https://code.visualstudio.com and install it, if you haven’t done so.

Then, launch VS Code and head over to the Extension menu on the left or press Ctrl + Shift + X.

Search for “PowerShell” in the list, select it and click Install on the right side.

Believe it or not, there are almost 6 million downloads already as of today. It seems there are more than enough people really into using Visual Studio Code for PowerShell as well.

Open Settings menu and make sure PowerShell:Start Automatically is checked so the extension starts automatically when a PowerShell file opens.

And that’s all you need to get it started.

Right off the bat, there are two ways to run the code you wrote. You can highlight the code you want to run, either full or part of it, right-click anywhere in the window and choose Run Selection or simply press F8 key.

Or, press Ctrl + Shift + P to bring up the Command Palette and choose Terminal: Run Active File in Active Terminal.

As to why VS Code over PowerShell ISE, check out this post from Learn PowerShell.