I was trying to test some Chef configurations on a Server 2012 image and kept hitting out of memory errors - StackOverflowExceptions, failures to load the CLR, and failures to start a shell due to limited page file.

It turns out that Windows Management Framework 3 doesn't actually use the MaxMemoryPerShellMB setting in Wsman:\localhost\Shell and uses a default 150MB value, not the 1024MB default the WSMAN configuration shows.

There is a hotfix out, but you need to request it.

You can check if it is installed with

get-hotfix -id KB2842230

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