To run a script in a scheduled task have a look at Alan's Running a PowerCLI Scheduled task.
A simple VM clone script could look like this
New-VM -Name VM2 -VM VM1 -Datastore datastorename -vmhost hostname
But you already had that.
The error mentions "notsupported", are you by any chance running this on a free ESXi host ?
Are you connected to a vCenter or an ESXi server ?
Because the cloning process requires a vCenter.
To clone on a standalone ESXi server, have a look at my HL Tools – Part 1 – Clone a VM without vCenter post.