Working with Excel COM objects in PowerShell takes some doing sometimes..
When using a method that takes multiple parameters of which you want to set just some, you need to also set the parameters in-between, because the method's parameters are used as positional parameters (not named unfortunately as in VBA)
Try this:
$excelFile = 'D:\Test\test.xlsx'
$outputFile = 'D:\Test\Output.csv'
$Excel = New-Object -ComObject Excel.Application
$Excel.Visible = $false
$Excel.DisplayAlerts = $false
$wb = $Excel.Workbooks.Open($excelFile)
$ws = $wb.Worksheets("Issue_Data")
# activate the worksheet or you'll risk saving a different sheet !
$ws.Activate()
# use [Type]::Missing for parameters that should remain at their default values
$useDefault = [Type]::Missing
# do the call, and specify all parameters, even the ones you will leave at their default values
# in this case, the 'Local' parameter is the last in line and here set to $true
# see https://docs.microsoft.com/en-us/office/vba/api/excel.worksheet.saveas
$ws.SaveAs($outputFile,62,$useDefault,$useDefault,$false,$false,$false,$useDefault,$useDefault,$true)
$Excel.Quit()
# clean up the com objects from memory
$null = [System.Runtime.Interopservices.Marshal]::ReleaseComObject($ws)
$null = [System.Runtime.Interopservices.Marshal]::ReleaseComObject($wb)
$null = [System.Runtime.Interopservices.Marshal]::ReleaseComObject($Excel)
[System.GC]::Collect()
[System.GC]::WaitForPendingFinalizers()
Note:
XlFileFormat xlCSVUTF8 (62) unfortunately is not available for Excel versions up to and including version 2016.
For creating UTF8 csv files on those versions, see this answer