Having trouble installing a third party library and I have not seen this error before using Windows 10 with Anaconda installed:
C:\\Users\\XYZ>conda env creat
This worked for me on Linux:
Uninstall the package via pip:
pip uninstall setuptools
Reinstall using the following command:
conda install -c anaconda setuptools
Consider also that system packages (python3-setuptools, python-setuptools in Ubuntu) might need to be removed.
python3-setuptools
python-setuptools