$_ is an alias for $psItem. 'foo', 'bar', 'baz' | forEach-object { write-host $_ }
'foo', 'bar', 'baz' | forEach-object { write-host $psItem }
$_ refers to the object that is received from the last step in the pipeline. catch block, $_ refers to the exception object (whose type is System.Management.Automation.ErrorRecord) that caused the catch block to be invoked.