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So looks to be a defect in the install_rally script with the latest setuptools.

https://github.com/openstack/rally/commit/648da41e12f63869d71a56d937a0c4a248345983#diff-4223e06995d80c70184937bde1901fa5

https://bugs.launchpad.net/rally/+bug/1647388

Updated to that patched copy and no issues. @Alin you may want to update your link in the Hyper-V v KVM posts.