Python refactor: Sort imports does not work with setuptools 49.2

Environment data

• VS Code version: 1.47.0
• Extension version (available under the Extensions sidebar): 2020.6.91350
• OS and version: linux Ubuntu 20.04
• Python version (& distribution if applicable, e.g. Anaconda): Python 3.8.2
• Type of virtual environment used (N/A | venv | virtualenv | conda | …): venv
• Relevant/affected Python packages and their versions: isort
• Value of the python.languageServer setting: Jedi

Expected behaviour

Calling “Python refactor: Sort imports” from command palette sorts import in active document

Actual behaviour

Nothing happens

Steps to reproduce:

• install setuptools >= 49.2 in workspace venv
• launch “Python refactor: Sort imports” from command palette

Logs

Devtools console:

Error: /home/me/work/proj/venv/lib/python3.8/site-packages/setuptools/distutils_patch.py:25: UserWarning: Distutils was imported before Setuptools. This usage is discouraged and may exhibit undesirable behaviors or errors. Please use Setuptools' objects directly or at least import Setuptools first.
  warnings.warn(

	at i (/home/me/.vscode/extensions/ms-python.python-2020.6.91350/out/client/extension.js:1)
	at Socket.<anonymous> (/home/me/.vscode/extensions/ms-python.python-2020.6.91350/out/client/extension.js:1)
	at Socket.emit (events.js:203)
	at addChunk (_stream_readable.js:295)
	at readableAddChunk (_stream_readable.js:276)
	at Socket.Readable.push (_stream_readable.js:210)
	at Pipe.onStreamRead (internal/stream_base_commons.js:166)
$onExtensionRuntimeError @ workbench.desktop.main.js:sourcemap:4312

Output pane:

> ~/work/proj/venv/bin/python ~/.vscode/extensions/ms-python.python-2020.6.91350/pythonFiles/pyvsc-run-isolated.py ~/.vscode/extensions/ms-python.python-2020.6.91350/pythonFiles/sortImports.py - --diff
cwd: ~/work/proj

This warning comes from isort that is installed in venv, both versions 4.3.21 and 5.0.9 (latest) produce this warning. Downgrading setuptools to <49.2 makes “Sort imports” command to work ok again - and this warning disappears. I believe this should not behave this way since even with the warning isort exit code is 0.

[OutOfFocus4]

I ran into this problem.

I was able to “fix” it by editing pythonFiles/sortImports.py

sys.stdin = io.BytesIO(stdin.read())
# End workaround

import setuptools # <— insert this line
import isort.main

isort.main.main()

[madqueendany]

Removing python.sortImports.path from settings.json fixed the issue for me