Set-ExecutionPolicy Error when not being called - powershell

Question

When I run any script from a .ps1 file on my server I receive an error about the Set-ExcutionPolicy being successful but being overridden by a higher scope.
However none of the code I am running has anything to do with execution policies or changing them. Any Idea why I'm getting this error?
This is on a Windows 2012 R2 server where execution policy for all levels is set to remote signed. I'm running on PowerShell V4.0
If I open PowerShell or the ISE and type in the command it completes without showing the error it only occurs when I try and run a script from a .ps1 file.
This is the error:
Set-ExecutionPolicy : Windows PowerShell updated your execution policy
successfully, but the setting is overridden by a policy defined at a more
specific scope. Due to the override, your shell will retain its current
effective execution policy of RemoteSigned. Type "Get-ExecutionPolicy -List"
to view your execution policy settings. For more information please see
"Get-Help Set-ExecutionPolicy".
At line:1 char:46
+ if((Get-ExecutionPolicy ) -ne 'AllSigned') { Set-ExecutionPolicy -Scope Process ...
+ ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
+ CategoryInfo : PermissionDenied: (:) [Set-ExecutionPolicy], SecurityException
+ FullyQualifiedErrorId : ExecutionPolicyOverride,Microsoft.PowerShell.Commands.SetExecutionPolicyCommand

Answer 1

The "Run with PowerShell" context menu entry for .ps1 files invokes the following commandline:
"C:\Windows\System32\WindowsPowerShell\v1.0\powershell.exe" "-Command" "if((Get-ExecutionPolicy ) -ne 'AllSigned') { Set-ExecutionPolicy -Scope Process Bypass }; & '%1'"
It's stored in the registry key HKCU\Microsoft.PowerShellScript.1\Shell\0\Command. Since you have the execution policy defined via Group Policy, setting a conflicting execution policy in the Process scope whenever you're running a PowerShell script via its context menu causes the error you observed.
Change the commandline in the registry to something like this:
"C:\Windows\System32\WindowsPowerShell\v1.0\powershell.exe" -File "%L"
and the error will disappear.