Embedding Powershell v2.0 in .NET app on Windows 8 RTM

Im getting the following error when trying to run hosted powershell scripts before upgrading from Windows 7 I never got this error.

> The following error occurred while loading the extended type data
> file: Microsoft.PowerShell.Core,
> C:\Windows\SysWOW64\WindowsPowerShell\v1.0\types.ps1xml(2977) : Error
> in type "System.Security.AccessControl.ObjectSecurity": Exception: The
> getter method should be public, non void, static, and have one
> parameter of type PSObject. Microsoft.PowerShell.Core,
> C:\Windows\SysWOW64\WindowsPowerShell\v1.0\types.ps1xml(2984) : Error
> in type "System.Security.AccessControl.ObjectSecurity": Exception: The
> getter method should be public, non void, static, and have one
> parameter of type PSObject. Microsoft.PowerShell.Core,
> C:\Windows\SysWOW64\WindowsPowerShell\v1.0\types.ps1xml(2991) : Error
> in type "System.Security.AccessControl.ObjectSecurity": Exception: The
> getter method should be public, non void, static, and have one
> parameter of type PSObject. Microsoft.PowerShell.Core,
> C:\Windows\SysWOW64\WindowsPowerShell\v1.0\types.ps1xml(2998) : Error
> in type "System.Security.AccessControl.ObjectSecurity": Exception: The
> getter method should be public, non void, static, and have one
> parameter of type PSObject. Microsoft.PowerShell.Core,
> C:\Windows\SysWOW64\WindowsPowerShell\v1.0\types.ps1xml(3005) : Error
> in type "System.Security.AccessControl.ObjectSecurity": Exception: The
> getter method should be public, non void, static, and have one
> parameter of type PSObject.

I have applied the following in App.config:

<dependentAssembly>
<assemblyIdentity name="System.Management.Automation" publicKeyToken="31bf3856ad364e35" />
<publisherPolicy apply="no" />
</dependentAssembly>

What could the issue be?

The solution is to do the following, rather than only adding a block for only System.Management.Automation as suggested by the posts I read, you need to add one for all referenced PS assemblies.

<runtime>
<assemblyBinding xmlns="urn:schemas-microsoft-com:asm.v1">
<dependentAssembly>
<assemblyIdentity name="System.Management.Automation" publicKeyToken="31bf3856ad364e35" />
<publisherPolicy apply="no" />
</dependentAssembly>
<dependentAssembly>
<assemblyIdentity name="Microsoft.PowerShell.Commands.Utility" publicKeyToken="31bf3856ad364e35" />
<publisherPolicy apply="no" />
</dependentAssembly>
<dependentAssembly>
<assemblyIdentity name="Microsoft.PowerShell.ConsoleHost" publicKeyToken="31bf3856ad364e35" />
<publisherPolicy apply="no" />
</dependentAssembly>
<dependentAssembly>
<assemblyIdentity name="Microsoft.PowerShell.Commands.Management" publicKeyToken="31bf3856ad364e35" />
<publisherPolicy apply="no" />
</dependentAssembly>
<dependentAssembly>
<assemblyIdentity name="Microsoft.PowerShell.Security" publicKeyToken="31bf3856ad364e35" />
<publisherPolicy apply="no" />
</dependentAssembly>
<dependentAssembly>
<assemblyIdentity name="Microsoft.PowerShell.Commands.Diagnostics" publicKeyToken="31bf3856ad364e35" />
<publisherPolicy apply="no" />
</dependentAssembly>
</assemblyBinding>
</runtime>

above answer did not work for me, i fixed the problem by removing the %APPDATA%\..\Local\Microsoft\VisualStudio\ folder.

Upon restarting VS this folder is recreated and the package manager console works again. A little crude but it does the job.

After trying the solution in the accepted answer and getting tired of Visual Studio resetting the file, I reinstalled VS 2015 from scratch and haven't had the problem since. If you find the issue persists, the nuclear option is definitely worth a try.

Install the appropriate version of PowerShell for your OS:

- Windows XP SP2 / Vista / 2003 / 2008 - PowerShell v1.0
- Windows XP SP3 / Vista SP1 / 7 / 2003 SP2 / 2008 R2 - PowerShell v2.0
- Windows 7 SP1 / 8 / 2008 SP1 / 2008 R2 SP1 / 2012 - PowerShell v3.0
- Windows 7 SP1 / 8.1 / 2008 R2 SP1 / 2012 / 2012 R2 - PowerShell v4.0
- Windows 7 SP1 / 8.1 / 2008 R2 SP1 / 2012 / 2012 R2 - PowerShell v5.0
(as part of Windows Management Framework (WMF) 5.0)

I had the same problem in VS 2015 Update 3.

I must remove the folder:

%APPDATA%\Local\Microsoft\VisualStudio\

and then add into:

c:\Users\%username%\AppData\Local\Microsoft\VisualStudio\14.‌​0\devenv.exe.config

in section:

<runtime>
<assemblyBinding xmlns="urn:schemas-microsoft-com:asm.v1">

the following lines:

<dependentAssembly>
<assemblyIdentity name="System.Management.Automation" publicKeyToken="31bf3856ad364e35" />
<publisherPolicy apply="no" />
</dependentAssembly>

<dependentAssembly>
<assemblyIdentity name="Microsoft.PowerShell.Commands.Utility" publicKeyToken="31bf3856ad364e35" />
<publisherPolicy apply="no" />
</dependentAssembly>

<dependentAssembly>
<assemblyIdentity name="Microsoft.PowerShell.ConsoleHost" publicKeyToken="31bf3856ad364e35" />
<publisherPolicy apply="no" />
</dependentAssembly>

<dependentAssembly>
<assemblyIdentity name="Microsoft.PowerShell.Commands.Management" publicKeyToken="31bf3856ad364e35" />
<publisherPolicy apply="no" />
</dependentAssembly>

<dependentAssembly>
<assemblyIdentity name="Microsoft.PowerShell.Security" publicKeyToken="31bf3856ad364e35" />
<publisherPolicy apply="no" />
</dependentAssembly>

<dependentAssembly>
<assemblyIdentity name="Microsoft.PowerShell.Commands.Diagnostics" publicKeyToken="31bf3856ad364e35" />
<publisherPolicy apply="no" />
</dependentAssembly>

I lost two days searching for solutions... thanks MS :-/