For many organisations, PowerShell remoting is done through a scripthost server where maximum concurrent session limits and maximum connected user limits can be reached.
As explained in this Microsoft blog, the following error might be encountered.
[localhost] Connecting to remote server failed with the following error message : The WS-Management service cannot process the request. This user is allowed a maximum number of 5 concurrent shells, which has been exceeded. Close existing shells or raise the quota for this user. For more information, see the about_Remote_Troubleshooting Help topic.
+ CategoryInfo : OpenError: (System.Manageme….RemoteRunspa
ce:RemoteRunspace) , PSRemotingTransportException
+ FullyQualifiedErrorId : PSSessionOpenFailed
Open a PowerShell session and run the following commands to get the current config.
PS> cd WSMan:\localhost\Shell
Run the command below to increase the number of maximum shells per user
PS> Set-Item .\MaxShellsPerUser 120
Run the command below to set the maximum number of concurrent users
PS> Set-Item .\MaxConcurrentUsers 100
Check the configurations have been updated
For the configurations changed above, I would recommend a minimum of 2 vCPU and 4 GB Memory.