How to fix DNX/DNVM in Visual Studio 2015?

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This is a known issue.

ASP.NET 5: On Windows 7 SP1, DNX SDK cannot be installed without
Powershell 3.0.

Symptoms

When you create an ASP.NET 5 project, you receive the following error message:

DNX SDK version ‘dnx-clr-win-x86.1.0.0-beta5’ failed to install. The
solution will use DNX SDK version ‘dnx-clr-win-x86-1.0.0-beta5’ for
this session

Workaround

To work around this issue, install Windows Powershell 3.0 (or higher) and try to create the project again. To see your current PS version, run $PsVersionTable command (details).

Links:

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