When a script causes an error then the error position message normally points to the line which causes the error.
There are cases when some combination of factors makes PowerShell to substitute the original error location with some other location from the call stack. As a result, it is more difficult to locate the actual source of an error.
The script Test-1-correct-error-location.ps1 is an example with an expected error. This error is normal, it tells exactly which line of code fails.
The script Test-2-misleading-error-location.ps1 is almost the same, just the
attribute CmdletBinding is added to a function. The same expected error now
contains misleading location information, it points to some other line in the
call stack. Note that PowerShell 2.0 does not have such an issue.
The script Test-3-recovering-error-location.ps1 shows that the recoded error
in $Error is still correct. Thus, in some cases it is possible to recover
actual error locations by analysing errors stored in $Error.