I am trying to create a short cut on public desktop for users, but this target path for this short cut is causing some issues.
Quote from CreateShortcut method documentation:
A common problem is putting arguments in the TargetPath property of the shortcut object, which doesn't work. All arguments to the shortcut must be put in the Arguments property.
So you have to do this:
$wshshell = New-Object -ComObject WScript.shell
$desktop = [System.Environment]::GetFolderPath('Desktop')
$lnk = $wshshell.CreateShortcut((Join-Path -Path $desktop -ChildPath 'CLMCPDEDEV.lnk'))
$lnk.TargetPath = 'C:\Program Files (x86)\Unisys\WebEnabler\Web Enabler.exe'
$lnk.Arguments = 'configfile=c:\development-installs\web-enabler-config\CLMCPDEDEV.cfg'
$lnk.Save()