Lots of people seem to be having this issue, from a far back as 2012 to even now in Jan 2015.
You can install the Windows Azure Powershell Command Line tools but when you open the Azure Powershell command window there is no blinking cursor to tell you where you are typing. If you want to correct or modify a previous command there is no indication of where your cursor is so you can’t easily modify the command.
Fortunately this is easily fixed by entering the following command in the Powershell window:
which then presents a small blinking cursor.
You will have to do this command every time you open or re-open the Azure Powershell window, so it could be best to add this command into your Powershell profile script. To edit your Powershell profile script type:
Add the [Console] line above and save and close your profile script.
If you don’t already have a Profile script then Notepad will prompt you to create one.
This could be a machine or OS specific issue as it happens to me on my Windows 7 machine but not on my Windows 2012 R2 server.
Many people have blogged this answer so thanks to you all. Too many to give everyone credit but an early blog that I found was: