I just found out from VMware support that Powershell 3.0 use in vCO is not yet supported and they do not yet have a release date for an updated Powershell plug-in.
From one of the developers "Current version of PowerShell plugin support PowerShell version up to 2.0, PowerShell 3.0 is not supported. Though it is not supported the script executing should work from the plugin. The inventory will not be available when connecting to PowerShell 3.0. "