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in an AD environment, where a user is part of "Domain Administrator", now if that user logs in to a machine using remote powershell using "enter-pssession" will it create any user profile for the user, if so will there be any group policies applied on it?

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By default it will create a user profile in the remote machine while using the command "Enter-PSSession".

If you want to avoid this creation add the following to your command:

-SessionOption (New-PSSessionOption -NoMachineProfile)

As well the Group Policy Settings will take effect the User Preferences set for the corresponding user at the domain level.

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