CreateOutOfProcessRunspace fails to Open

Prerequisites

• Write a descriptive title.
• Make sure you are able to repro it on the latest released version
• Search the existing issues.
• Refer to the FAQ.
• Refer to Differences between Windows PowerShell 5.1 and PowerShell.

Steps to reproduce

I am trying to run the following script

function Get-PowerShellVersion {
$PSVersionTable.PSVersion
}

$psVersion = Get-PowerShellVersion
$typeTable = [System.Management.Automation.Runspaces.TypeTable]::new([string[]]@())
$powershellInstance = [System.Management.Automation.Runspaces.PowerShellProcessInstance]::new($psVersion, $null, $null, $true)
$runspace = [System.Management.Automation.Runspaces.RunspaceFactory]::CreateOutOfProcessRunspace($typeTable, $powershellInstance)
$runspace.Open()

Expected behavior

$runspace.Open() should succeed.

Actual behavior

Fails with Error 

System.Management.Automation.Remoting.PSRemotingTransportException: The background process reported an error with the following message: W i n d o w s   P o w e r S h e l l   t e r m i n a t e d   w i t h   t h e   f o l l o w i n g   e r r o r :   .
   at System.Management.Automation.Runspaces.AsyncResult.EndInvoke()
   at System.Management.Automation.Runspaces.Internal.RunspacePoolInternal.EndOpen(IAsyncResult asyncResult)
   at System.Management.Automation.Runspaces.Internal.RemoteRunspacePoolInternal.Open()
   at System.Management.Automation.Runspaces.RunspacePool.Open()
   at System.Management.Automation.RemoteRunspace.Open()

Error details

No response

Environment data

Name                           Value
----                           -----
PSVersion                      5.1.17763.5820
PSEdition                      Desktop
PSCompatibleVersions           {1.0, 2.0, 3.0, 4.0...}
BuildVersion                   10.0.17763.5820
CLRVersion                     4.0.30319.42000
WSManStackVersion              3.0
PSRemotingProtocolVersion      2.3
SerializationVersion           1.1.0.1

Visuals

No response

Start by reproducing the PowerShell script through CreateOutOfProcessRunspace and Runspace.Open() using the reported Windows PowerShell environment. Trace the background process failure and compare the reported PowerShellProcessInstance version and remoting setup; done means the runspace opens successfully without the PSRemotingTransportException.