A default installation of SQL Server 2012 creates a SQL Agent job called syspolicy_purge_history which has a job step (3) that uses the PowerShell subsystem. Apparently, this subsystem always attempts to run “set-executionpolicy RemoteSigned –scope process –Force” before executing the actual code requested in the job step command. When the PowerShell ExecutionPolicy has been set at the MachinePolicy scope via a GPO, then this causes the PowerShell subsystem job step to fail as shown in the attachment. We can reproduce this with any PowerShell Subsystem job step - not just the system job shown. If a MachinePolicy or UserPolicy scope has been set via GPO (as shown in the attachment), then SQL Server should either not try to set a local scope or it should handle this error and continue to attempt to execute the PowerShell commands within the ExecutionPolicy dictated by the GPO.