Issues with nested IIS - Access Denied

We have two PSU sites running in IIS. They work, we can login, create dashboards, jobs etc. The issue is that when we try to run dashboards as a different account we get 500 status errors in the GUI. Looking at the logs we see the following:

System.ComponentModel.Win32Exception (5): An error occurred trying to start process 'c:\windows\system32\WindowsPowerShell\v1.0\powershell.exe' with working directory 'C:\PSU\data_user\Repository'. Access is denied.

I’ve re-verified the app pool settings as stated in the documentation. The account we are attempting to runas is an administrator on the server and has “Logon as a batch job” rights in the local security policy. We have another 2.x instance of PSU that runs under Kestrel without this issue so I’ve got to think it has something to do with IIS but I’m not sure what to look for at this point.

Product: PowerShell Universal
Version: 3.7.9

I’m not really an IIS guy, however your error seams to point to permissions. Does the user trying to run powershell.exe have execute permissions to both folders and PowerShell.

The 1st thing which stuck out to me is that the PowerShell folder path implies you are running PowerShell v1?.

What happens if from ‘C:\PSU\data_user\Repository’ you try to load powershell.exe from the path in the post and run a simple command like get-date?

Does it let you do it, or does it throw an access denied error?