diff --git a/src/System.Management.Automation/FormatAndOutput/DefaultFormatters/PowerShellCore_format_ps1xml.cs b/src/System.Management.Automation/FormatAndOutput/DefaultFormatters/PowerShellCore_format_ps1xml.cs
index f22ccc9725a..dfd610e4750 100644
--- a/src/System.Management.Automation/FormatAndOutput/DefaultFormatters/PowerShellCore_format_ps1xml.cs
+++ b/src/System.Management.Automation/FormatAndOutput/DefaultFormatters/PowerShellCore_format_ps1xml.cs
@@ -766,14 +766,14 @@ private static IEnumerable<FormatViewDefinition> ViewsOf_System_Management_Autom
                             $maxDepth = 10
                             $ellipsis = ""`u{2026}""
                             $resetColor = ''
-                            if ($Host.UI.SupportsVirtualTerminal -and !(Test-Path env:__SuppressAnsiEscapeSequences)) {
+                            if ($Host.UI.SupportsVirtualTerminal -and ([string]::IsNullOrEmpty($env:__SuppressAnsiEscapeSequences))) {
                                 $resetColor = [System.Management.Automation.VTUtility]::GetEscapeSequence(
                                     [System.Management.Automation.VTUtility+VT]::Reset
                                 )
                             }
 
                             function Get-VT100Color([ConsoleColor] $color) {
-                                if (!$Host.UI.SupportsVirtualTerminal -or (Test-Path env:__SuppressAnsiEscapeSequences)) {
+                                if (!$Host.UI.SupportsVirtualTerminal -or !([string]::IsNullOrEmpty($env:__SuppressAnsiEscapeSequences))) {
                                     return ''
                                 }
 
@@ -1013,14 +1013,14 @@ private static IEnumerable<FormatViewDefinition> ViewsOf_System_Management_Autom
                                     function Get-ConciseViewPositionMessage {
 
                                         $resetColor = ''
-                                        if ($Host.UI.SupportsVirtualTerminal -and !(Test-Path env:__SuppressAnsiEscapeSequences)) {
+                                        if ($Host.UI.SupportsVirtualTerminal -and ([string]::IsNullOrEmpty($env:__SuppressAnsiEscapeSequences))) {
                                             $resetColor = [System.Management.Automation.VTUtility]::GetEscapeSequence(
                                                 [System.Management.Automation.VTUtility+VT]::Reset
                                             )
                                         }
 
                                         function Get-VT100Color([ConsoleColor] $color) {
-                                            if (!$Host.UI.SupportsVirtualTerminal -or (Test-Path env:__SuppressAnsiEscapeSequences)) {
+                                            if (!$Host.UI.SupportsVirtualTerminal -or !([string]::IsNullOrEmpty($env:__SuppressAnsiEscapeSequences))) {
                                                 return ''
                                             }
 
diff --git a/test/powershell/engine/Formatting/ErrorView.Tests.ps1 b/test/powershell/engine/Formatting/ErrorView.Tests.ps1
index b230ce59f68..1087f3700a7 100644
--- a/test/powershell/engine/Formatting/ErrorView.Tests.ps1
+++ b/test/powershell/engine/Formatting/ErrorView.Tests.ps1
@@ -102,9 +102,15 @@ Describe 'Tests for $ErrorView' -Tag CI {
 
         It "Position message does not contain line information" {
 
-            $e = & "$PSHOME/pwsh" -noprofile -command "foreach abc" | Out-String
+            $e = & "$PSHOME/pwsh" -noprofile -command "foreach abc" 2>&1 | Out-String
+            $e | Should -Not -BeNullOrEmpty
             $e | Should -Not -BeLike "*At line*"
         }
+
+        It "Error shows if `$PSModuleAutoLoadingPreference is set to 'none'" {
+            $e = & "$PSHOME/pwsh" -noprofile -command '$PSModuleAutoLoadingPreference = ""none""; cmdletThatDoesntExist' 2>&1 | Out-String
+            $e | Should -BeLike "*cmdletThatDoesntExist*"
+        }
     }
 
     Context 'NormalView tests' {