diff --git a/src/PowerShellEditorServices/Services/PowerShellContext/PowerShellContextService.cs b/src/PowerShellEditorServices/Services/PowerShellContext/PowerShellContextService.cs
index 8bf56b7a3..165a01e13 100644
--- a/src/PowerShellEditorServices/Services/PowerShellContext/PowerShellContextService.cs
+++ b/src/PowerShellEditorServices/Services/PowerShellContext/PowerShellContextService.cs
@@ -367,11 +367,6 @@ public void Initialize(
                     powerShellVersion.ToString());
             }
 
-            if (VersionUtils.IsWindows)
-            {
-                this.SetExecutionPolicy();
-            }
-
             // Set up the runspace
             this.ConfigureRunspace(this.CurrentRunspace);
 
@@ -428,6 +423,11 @@ public void Initialize(
             {
                 this.PromptContext = new LegacyReadLineContext(this);
             }
+
+            if (VersionUtils.IsWindows)
+            {
+                this.SetExecutionPolicy();
+            }
         }
 
         /// <summary>
@@ -2102,25 +2102,24 @@ private void SetExecutionPolicy()
             // - Process
             // - CurrentUser
             // - LocalMachine
-            // This is the order of precedence we want to follow, skipping the Process scope
+            // We want to ignore policy settings, since we'll already have those anyway.
+            // Then we need to look at the CurrentUser setting, and then the LocalMachine setting.
             //
             // Get-ExecutionPolicy -List emits PSObjects with Scope and ExecutionPolicy note properties
             // set to expected values, so we must sift through those.
+
             ExecutionPolicy policyToSet = ExecutionPolicy.Bypass;
-            for (int i = policies.Count - 1; i >= 0; i--)
+            var currentUserPolicy = (ExecutionPolicy)policies[policies.Count - 2].Members["ExecutionPolicy"].Value;
+            if (currentUserPolicy != ExecutionPolicy.Undefined)
             {
-                PSObject policyObject = policies[i];
-
-                if ((ExecutionPolicyScope)policyObject.Members["Scope"].Value == ExecutionPolicyScope.Process)
-                {
-                    break;
-                }
-
-                var executionPolicy = (ExecutionPolicy)policyObject.Members["ExecutionPolicy"].Value;
-                if (executionPolicy != ExecutionPolicy.Undefined)
+                policyToSet = currentUserPolicy;
+            }
+            else
+            {
+                var localMachinePolicy = (ExecutionPolicy)policies[policies.Count - 1].Members["ExecutionPolicy"].Value;
+                if (localMachinePolicy != ExecutionPolicy.Undefined)
                 {
-                    policyToSet = executionPolicy;
-                    break;
+                    policyToSet = localMachinePolicy;
                 }
             }