Problem:
I get the following error when I attempt a DSC release with Release Management:
Permission denied while trying to connect to the target machine Demo on the port:5985 via power shell remoting.
Solution:
Don't overlook the obvious. Triple check the password of the account in the "Deploy To Standard Environment" activity.
The account used here must have permission to connect via power shell remoting. If that fails try adding the source to the TrustedHosts of the remote machine. You can read how here http://technet.microsoft.com/en-us/library/hh847850.aspx.