[Python] Why is pip giving me "Fatal error in launcher: Unable to create process using" error?

I have a newly installed Windows 11 up to date, nothing else but the OS installed. I install the package https://aka.ms/installazurecliwindows as per Microsoft documentation. This is needed for Azure Local Deployment. When I switch to c:\Program Files (x86)\Microsoft SDKs\Azure\CLI2\Scripts and run as simple as pip I get the following error message.

Fatal error in launcher: Unable to create process using '"D:\a\_work\1\s\build_scripts\windows\artifacts\Python\python.exe" "c:\Program Files (x86)\Microsoft SDKs\Azure\CLI2\Scripts\pip.exe" ': The system cannot find the file specified.


I have tried it on Windows Server 2025, and on Azure Local 24H2, both 32, and 64 bit versions of AzureCLI.msi

I tried to open the folder with Total Commander, and search for part of the non-existing path as string inside all files and it was found in 3 files: pip.exe, pip3.exe, pip3.12.exe, and wheel.exe but why and how is this possible and/or how is this working for everyone else, becuse I didn't find a single article that talks about this.

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