Install the Powershell 7.0 Preview 1 on Windows. (install with defaults)
PATH should have C:\Program Files\PowerShell\7-preview\
PATH contains C:\Program Files\PowerShell\7-preview\preview
Here's the path after running installing it in Sandbox (saw the same issue on my devbox)

@bergmeister Can you confirm the issue?
I can confirm this is still an issue in 7.0.0-preview.6 @iSazonov
/cc @SteveL-MSFT Have we the issue in release branch?
This is actually intended as the pwsh-preview.cmd batch file resides there while the real pwsh.exe is in the parent folder. By changing the path to the parent, pwsh will start the last one instead of always the stable one.
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I can confirm this is still an issue in 7.0.0-preview.6 @iSazonov