Package Manager Console error The type initializer for 'System.Management.Automation.Runspaces.InitialSessionState' threw an exception

Recently I came across the error The type initializer for 'System.Management.Automation.Runspaces.InitialSessionState' threw an exception, when I am trying to open the Package Manager Console.

As per comment form Yishai Galatzer  this is caused by a stack overflow bug in a PowerShell DLL 

Workaround

In your Visual Studio folder, make a backup copy of file devenv.exe.config.

Then, in the original devenv.exe.config file, insert the following after the opening assemblyBinding element(run as admin) and save the file

<!-- WORKAROUND START ->
<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>
<!-- WORKAROUND END -->

To Make the changes effect you'll need to restart VS.

Cheers,

Samitha