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The kubernetes deployment in GHA keeps failing on Python 3.7, but works fine consitently on 3.8 so I propose we go with 3.8.
Fixes #4359
Python 3.8 also uses pip 21.1 which, by default, uses the new dependency resolver algorithm that caused a lot of issues in the past, but is now finally resolved as we can see in the tests in this PR and in #2978