17c7ca3 changed setup.py to repair setup.py install invocations, but removed the setuptools dependency from wheels built with Python 3.8 or later, regardless of the Python version at the install site.
The new check:
requires = []
if py_version < (3, 8):
requires.append("setuptools")
checks the current version of python when wheels are built, which will likely not match the version of python on the system where supervisor is installed.
You could perhaps try to inspect the environment to determine if setup.py install is being invoked directly by a user? I haven't tried to do something like that before however.