I\'ve installed the latest python (2.7.9) bundled with pip and setuptools for windows 32-bit. I\'ve tried reinstalling pip but the problem persists.
Here\'s the erro
In our case, in 2020 using Python3, the solution to this problem was to move the Python installation to the cloud-init startup script which instantiated the VM.
We had been encountering this same error when we had been trying to install Python using scripts that were called by users later in the VM's life cycle, but moving the same Python installation code to the cloud-init script eliminated this problem.