When i run following command in my Django project:
pip install -r requirements.txt --upgrade
I get following error:
If you're using a virtualenv, this shouldn't happen,if it does, then here is a similar question to your problem.
OS X Uninstall a distutils installed project
If you do remove the argparse package, it can be installed again using pip.
Don't have enough reputation to write this as a comment yet. :(
This sounds very much like you are hitting https://github.com/pypa/pip/issues/3384 - the temporary solution is to pin pip<8