Resolving error "No snap-ins have been registered for windows powershell version 2"

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After doing some update\configuration changes in SharePoint Farm, I was getting this issue when trying to open "SharePoint 2010 Management Shell":

Add-PSSnapin : No snap-ins have been registered for windows powershell version 2

This was resolved by changing the path of the powershell.exe used to initiate the management shell. In properties -> Shortcut -> Target, powershell.exe was pointing to sysWOW64 folder. I changed the same to point to System32 [c:\windows\system32\windowspowershell\v1.0\powershell.exe].