APPC ansible server fails to start with new version of setuptools

Traceback (most recent call last):
File "RestServer.py", line 34, in <module>
import cherrypy
File "/usr/local/lib/python2.7/dist-packages/cherrypy/_init_.py", line 66, in <module>
from ._cperror import (
File "/usr/local/lib/python2.7/dist-packages/cherrypy/_cperror.py", line 129, in <module>
from more_itertools import always_iterable
File "/usr/local/lib/python2.7/dist-packages/more_itertools/_init_.py", line 1, in <module>
from more_itertools.more import * # noqa
File "/usr/local/lib/python2.7/dist-packages/more_itertools/more.py", line 329
def _collate(*iterables, key=lambda a: a, reverse=False):