Thanks for replying yezdi
At the time of my original post I was trying to use PowerCLI 11.2 with Lambda.
I thought something must of changed in 11.3 as that's the version you got working. So I tried with 11.5 got the same error.
Turns out all I need to do was called out in your blog post step 10, set the Environment variable HOME to /tmp
Now I can get PowerCLI versions 11.2, 11.3 and 11.5 to work.
Thanks for providing the missing link!