Below is the script which will create you a directory structure 4 levels deep. For docx files, it will insert randomly some images.

You can set

- the numbers of words in a file

- the random number of files in a directory

- the root-folder name

- the folder where images needed for docx files are located ( you will be asked for that folder )


#########################################################################
##########    Creating directories structure and populate it with random files    ##########
#########################################################################
 
########## Definign variables ##########
 
$location = "c:\powershellscripts1"
if (!(test-path ($location)))
{
    New-Item -ItemType Directory $location
}
Set-Location $location
cls
Read-Host "The structure will be created in $location`nPlease press any key to continue"
# How many sub-directory in each directory
$nr_folders = 5
# Directory's name pattern
$nume="\folder_"
# Where to create the structure
$main_folder = (Get-Location).path+$nume+"root"
# How many wors, random, in each file
$Words_max_no = 500
$Words_min_no = 15
# Defining the words dictionary, which will be used creating txt and docx files
$words_array = $null
$words_array = @()
$words = "time,person,year,way,day,thing,man,world,life,hand,part,child,eye,woman,place,work,week,case,point,government,company,number,group,problem,fact,be,have,do,say,get,make,go,know,take,see,come,think,look,want,give,use,find,tell,ask,work,seem,feel,try,leave,call,good,new,first,last,long,great,little,own,other,old,right,big,high,different,small,large,next,early,young,important,few,public,bad,same,able,up,so,out,just,now,how,then,more,also,here,well,only,very,even,back,there,down,still,in,as,too,when,never,really,most,of,in,to,for,with,on,at,from,by,about,as,into,like,through,after,over,between,out,against,during,without,before,under,around,among,it,I,you,he,they,we,she,who,them,me,him,one,her,us,something,nothing,anything,himself,everything,someone,themselves,everyone,itself,anyone,myself,and,that,but,or,as,if,when,than,because,while,where,after,so,though,since,until,whether,before,although,nor,like,once,unless,now,except"
foreach ($item in $words.Split(","))
{
    $words_array += $item   
}
# File types will be created
$types = "txt,docx,xlsx"
# How many file will be created in each directory
$files_number_max = 4
$files_number_min = 1
# Get the pictures which will be included in docx files
$pics = @{}
$pics = Get-ChildItem ((new-object -com Shell.Application).BrowseForFolder(0, "Select the source folder", 0, "")).Self.Path -Filter *.jpg
 
######################################
 
function createfile($Folder,$pics,$words_array,$extension,$Words_max_no,$Words_min_no)
{
    $new_line = 0
    $line = ""
    $delimiter = " "
    # Total number of word in file
    $words_number = Get-Random -Maximum $Words_max_no -Minimum $Words_min_no
    # At which chars, introduce a special char
    $nr = [math]::Round((get-random -maximum 50 -minimum 24)/4)
    # Words per row
    $wordsinline = 3*(get-random -Maximum 10 -Minimum 3)
    $lines=0
    if($extension -match 'docx')
    {
        $word=new-object -ComObject "Word.Application"
        $doc=$word.documents.Add()
        #$word.Visible=$True
        $selection=$word.Selection
    }
    $Name = ((65..90)  | Get-Random | % {[char]$_})+((65..90)  | Get-Random | % {[char]$_})+((65..90)  | Get-Random | % {[char]$_})+((65..90) | Get-Random | % {[char]$_})+((65..90)  | Get-Random | % {[char]$_})+((65..90) | Get-Random | % {[char]$_})+"_$($words_number)_$dat.$extension"
    $FILENAME = $FOLDER+'\'+$name
    for ($i = 1; $i -lt $words_number; $i++)
    {
        $new_line = $new_line + 1
        if ( $new_line -eq $wordsinline)
        {
            ##### check if introduce new line in txt file
            $lines = $lines + 1
            if($extension -match 'docx')
            {
                if ($lines -eq (Get-Random -Maximum 20 -Minimum 5))
                {
                    # Insert image
                    $lines = 0
                    $selectimage = $selection.InlineShapes.AddPicture($pics[(Get-Random -Maximum ($pics.Length) -Minimum 0)].FullName)
                }
            }
            $line += " " + $words_array[(Get-Random -Maximum $words_array.Length)]
            $line = $line.Trim(" ").substring(0,1).toupper() + $line.Trim(" ").substring(1) + "."
            if($extension -match 'txt')
            {
                $line | Out-File $FILENAME -Append
            }
            if($extension -match 'docx')
            {
                $selection.TypeText($line)
                $selection.TypeText("`n")
            }
            $wordinline = 3*(get-random -Maximum 10 -Minimum 3)
            $new_line = 0
            $line = ""
            $wordsinline = 3*(get-random -Maximum 10 -Minimum 3)
        }
        else
        {
            $new_word = $words_array[(Get-Random -Maximum $words_array.Length)]
            if((($i/$nr - [math]::round($i/$nr)) -eq 0) -and ($new_line -gt 1 ))
            {
                $delimiter = (Get-Random -InputObject "!", "?", ".", "-",";","_")+" "
                $new_word = $new_word.Trim(" ").substring(0,1).toupper()+$new_word.Trim(" ").substring(1)
            }
            else
            {
                $delimiter = " "
            }
            $line += $delimiter + $new_word
        }
        }
        if($extension -match 'docx')
        {
            $doc.SaveAs([ref]$FILENAME)
            $doc.Close()
            $word.quit()
        }
        if($extension -match 'xlsx')
        {
            excel_file $FILENAME
        }
        "...the document $filename was created. Enjoy! "
}
 
function excel_file ($FILENAME)
{
    # Defining chart type numbers
    $charttype= @(3,4,51,52,53,54,55,56,57,58,59,60,61,62,63,64,65,66,67,68,69,81,82,83)
    $excel = New-Object -ComObject excel.application
    #$excel.Visible = $True
    $excel.DisplayAlerts = $False
    $workbook = $excel.Workbooks.Add()
    $serverInfoSheet = $workbook.Worksheets.Item(1)
    $serverInfoSheet.Activate() | Out-Null
    $serverInfoSheet.Cells.Item(1,1)= 'Excel File Test'
    $columns = Get-Random -Minimum 3 -Maximum 7
    $rows = Get-Random -Minimum 20 -Maximum 40
    for ($col = 1; $col -le $columns; $col++)
    {
        $serverInfoSheet.Cells.Item(2,2 + $col)='Budget ' + $col.ToString()
        $serverInfoSheet.Cells.Item(2,2 + $col).Font.Bold = $true
    }
    for ($row = 1; $row -le $rows; $row++)
    {
        $serverInfoSheet.Cells.Item(2 + $row,2)=2000 + $row.ToString()
        $serverInfoSheet.Cells.Item(2 + $row,2).font.bold = $True
    }
    for ($col = 1; $col -le $columns; $col++)
    {
        for ($row = 1; $row -le $rows; $row++)
        {
            $serverInfoSheet.Cells.Item($row+2,$col+2) = Get-Random -Minimum 100 -Maximum 2593
        }
    }
    $temp = $excel.Charts.Add()
    $temp.Delete()
    $chart = $serverInfoSheet.Shapes.AddChart().Chart
    $serverInfoSheet.Activate()
    $chart.ChartType = $charttype[(get-random -maximum $charttype.Count)]
    $min = 'b2'
    $max = [char](66+$columns)+($rows+2).ToString()
    $chartdata = $serverInfoSheet.Range($min,$max)
    $chart.SetSourceData($chartdata)
    $serverInfoSheet.SaveAs($FILENAME)
    $excel.displayAlerts=$False
    $excel.Quit()
}
 
function main($folder,$words_array,$types,$files_number_max,$files_number_min,$pics,$Words_max_no,$Words_min_no ){
    $folder
    foreach ($extension in $types.Split(","))
    {
       $extension
        #calculating a random number for files number with specific error
        [int]$files_nr = Get-Random -maximum $files_number_max -Minimum $files_number_min
        Write-Host "I will create in this folder $files_nr $extension files"
        for ($k = 1; $k -le $files_nr; $k++)
        {
            . createfile $folder $pics $words_array $extension $Words_max_no $Words_min_no
            "... working hard ..."
        }
    }
}
 
cls
 
# Creates the directories structure
for ($i1 = 1; $i1 -le $nr_folders; $i1++)
{
    $nume_final= $main_folder + $nume+$i1.ToString()
    New-Item -ItemType Directory $nume_final -ErrorAction SilentlyContinue
    $nr2 = Get-Random -Maximum $nr_folders -Minimum 0
    $folder = $nume_final
    main $folder $words_array $types $files_number_max $files_number_min $pics $Words_max_no $Words_min_no | Out-Null
    for ($i2 = 1; $i2 -le $nr2; $i2++)
    {
        $nume_final2= $nume_final+$nume+$i2.ToString()+$i1.ToString()
        New-Item -ItemType Directory $nume_final2 -ErrorAction SilentlyContinue
        $nr3 = Get-Random -Maximum $nr_folders -Minimum 0
        $folder = $nume_final2
        main $folder $words_array $types $files_number_max $files_number_interval_min $pics $Words_max_no $Words_min_no | Out-Null
        for ($i3 = 1; $i3 -le $nr3; $i3++)
        {
            $nume_final3= $nume_final2+$nume+$i3.ToString()+$i2.ToString()+$i1.ToString()
            New-Item -ItemType Directory $nume_final3 -ErrorAction SilentlyContinue
            $nr4 = Get-Random -Maximum $nr_folders -Minimum 0
            $folder = $nume_final3
            main $folder $words_array $types $files_number_max $files_number_min $pics $Words_max_no $Words_min_no | Out-Null
            for ($i4 = 1; $i4 -le $nr4; $i4++)
            {
                $nume_final4= $nume_final3+$nume+$i4.ToString()+$i3.ToString()+$i2.ToString()+$i1.ToString()
                New-Item -ItemType Directory $nume_final4 -ErrorAction SilentlyContinue
                $folder = $nume_final4
                main $folder $words_array $types $files_number_max $files_number_min $pics $Words_max_no $Words_min_no | Out-Null
            }
        }
    }
}