Failed to load the dll from hostfxr.dll

I have 2 VMs that I believe to be identical, But are clearly not. These two VMs are load balanced using NLB. I have a powershell script that will find an .exe and run it with parameters. When I run the the ps script on VM1, it works perfectly. However when I run it on VM2 it does nothing. So I trying to run the ps script from cmd and I am getting the following error:

Failed to load the dll from [D:...\hostfxr.dll], HRESULT: 0x80070057

The library hostfxr.dll was found, but loading it from D:...\hostfxr.dll failed

Installing .NET Core prerequisites might help resolve this problem. http://go.microsoft.com/fwlink/?LinkID=798306&clcid=0x409

Powershell Script:

param (
    [string]$environment = "Dev",
    [string]$port = "5000",
    [string]$service = "STARS",
)

$env:ASPNETCORE_ENVIRONMENT = $environment
$env:ASPNETCORE_URLS = ("http://0.0.0.0:$port")

Push-Location -Path "D:\...\$service"
Start-Process -FilePath "D:\...\$service\$service.exe" -WorkingDirectory "D:\...\$service" -WindowStyle Hidden  

Both VMs are run Windows Server 2008 R2 Standard, Service Pack 1.

Is there common areas I should be looking into to find a solution to this issue?