A security configuration is in place within the domain to prevent certain users from creating new GPOs.
new-item -Path 'VCRoot:\Windows\TEST' -Name 'Test001' -ItemType GPO -Comment "Powershell Test GPO" -Domain "windows.lab"
This issue has been identified as a defect in GPOADmin where security restrictions enforced in the client are not properly validated when using the PowerShell provider (VCRoot).
A defect has been logged with Quest Development:
At this time, there is no permanent fix available in released versions.
Until a fix is available, consider the following mitigation strategies:
Restrict Access to GPOADmin PowerShell Provider
VCRoot PowerShell provider.Use Active Directory Delegation Controls
Monitor and Audit GPO Creation
Operational Controls