Powershell test-path not working?

Wow. I must be on the stupid pills today. I'm using a simple Test-Path in a script and I cannot figure out why it doesn't enter the IF block when the file is present. I run the same code in the ISE command window and it works fine:

$allfile="c:\users\rs02130\desktop\sonarRules\jsrulesall.xlsx"
Write-Output "Testing $allfile"
if (Test-Path $allfile) 
{
    Write-Output "In If"
    try
    {
        Write-Output "Removing $allfile"
        Remove-Item $allfile -Force -ErrorAction Stop
        Write-Output "Removed $allfile"
    }
    catch
    {
        Write-Error "Error removing $allfile"
        exit 1
    }
}

Clearly I'm missing something fundamental but I don't get it. The full original script has similar code in another region and it works fine.