This error message sometimes occurs if a server has a network drive mounted in a user context other than the context in which the error appears, or if a server has a mapped drive which is in a disconnected state and can’t reconnect
user DOMAIN\Bob has mounted an NFS drive on the server as Drive E:
user DOMAIN\serviceuser runs a tentacle on the same server
When \serviceuser attempts to initialise a powershell process on the server, it goes through the normal powershell initialisation process, which includes InitializeDefaultDrives, however it can’t access \Bob’s mounted drive E:, so throws the error.
server has a mapped drive, Z:\ which connects to a remote share. That remote share is later turned off, but the mapping is not removed. On initializing powershell, you see the error.
The solution is most likely to find the mapped share and either remove the share or reestablish the connection. This might be a little tricky if the drive is mapped by, say, a GPO or a startup script, but hopefully the following link will give a bit of insight in how to find the problem
Hope this helps!