Launch pwsh.exe error. The system cannot find the file specified

UnitySync o365 connection TEST, Discovery or Sync may return this error:

Launch pwsh.exe error. The system cannot find the file specified.

To Fix:
Ensure your System Path includes the location of Powershell v7’s pwsh.exe (listed above any other powershell version).

i.e. C:\Program Files\Powershell\7
(Your install location might differ)

Note: A reboot is required after updating the system path.

Refer to KB Special o365 System Requirements