Summary:
upgrade setuptools to 78.1.1 for CVE fixes
also support older setuptools for python 3.8, which cannot run 78.1.1

Original commit: 5c92095b629583e399355dee8dea2e8ee0b4077d / D45973

Test Plan: itest

Reviewers: muthu, anijhawan, nbhatia, nsingh

Reviewed By: muthu

Subscribers: nikhil, yugaware

Differential Revision: https://phorge.dev.yugabyte.com/D46166