PSStackTest.cs

using System;
using System.Management.Automation;
using System.Management.Automation.Runspaces;
using System.Threading;

public static class Test
{
    private const string Script =
        "& {param($e) $e::Iterations++; & $MyInvocation.MyCommand.ScriptBlock $e  } $args[0]";

    public static int Iterations { get; set; }

    public static void RunTests(int stacksize)
    {
        Iterations = 0;
        PSRun();
        Console.WriteLine($"Iterations: {Iterations}");
        Iterations = 0;
        PSRunWithThread(stacksize);
        Console.WriteLine($"Iterations: {Iterations}");
    }

    private static void PSRun()
    {
        using PowerShell ps = GetPSTest();
        ps.Invoke();
        Console.WriteLine(ps.Streams.Error[0]?.Exception.Message);
    }

    private static void PSRunWithThread(int stacksize)
    {
        Thread thread = new(() =>
        {
            using Runspace rs = RunspaceFactory.CreateRunspace();
            rs.ThreadOptions = PSThreadOptions.UseCurrentThread;
            rs.Open();

            using PowerShell ps = GetPSTest();
            ps.Runspace = rs;
            ps.Invoke();
            Console.WriteLine(ps.Streams.Error[0]?.Exception.Message);
        }, stacksize);

        thread.Start();
        thread.Join();
    }

    private static PowerShell GetPSTest() => PowerShell
        .Create()
        .AddScript(Script)
        .AddArgument(typeof(Test));
}

test.md

Add-Type -Path ./PSStackTest.cs
[Test]::RunTests(20mb)

# The script failed due to call depth overflow.
# Iterations: 9055
# The script failed due to call depth overflow.
# Iterations: 19132