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The about_Run_With_PowerShell page says the following:
The Run with PowerShell feature starts a Windows PowerShell session that has an execution policy of Bypass, runs the script, and closes the session.
It runs a command that has the following format:
pwsh.exe -File <FileName> -ExecutionPolicy Bypass
The first page of this is correct: it does start a Windows PowerShell session. But the example command is not correct: it doesn't run pwsh.exe, it runs powershell.exe instead. (I wish it was possible to change the behavior to run pwsh instead, but I don't think this is possible.)