Windows - No module named setuptools inspite installing it

I'm using conda version 4.12.0. OS is Windows 10.

I have installed setuptools successfully.

python -c "import setuptools"

The above command gives no error, indicating setuptools is indeed present.

But when I run a install.sh file, which calls a setup.py file which uses setuptools, it gives an error.

I ran the following command

(consistent_depth) C:\Users\a0502200\Desktop\consistent_depth>"./scripts/install.sh"

Below is the install.sh file :-

# conda create -n consistent_depth python=3.6
# conda activate consistent_depth
# Note to set LD_LIBRARY_PATH if conda activate fails to do so.
pip install -r requirements.txt -f https://download.pytorch.org/whl/torch_stable.html
pushd third_party/flownet2
chmod +x install.sh
./install.sh
popd

Following is the error that's coming :-

Traceback (most recent call last):
 File "C:\Users\a0502200\Desktop\consistent_depth\third_party flownet2\networks\correlation_package\setup.py", line 5, in <module>
    from setuptools import setup, find_packages
ModuleNotFoundError: No module named 'setuptools'
Traceback (most recent call last):
  File "C:\Users\a0502200\Desktop\consistent_depth\third_party flownet2\networks\resample2d_package\setup.py", line 5, in <module>
    from setuptools import setup
ModuleNotFoundError: No module named 'setuptools'

Below is the setup.py file (correlation_package):-

import os
# import torch

from setuptools import setup, find_packages
from torch.utils.cpp_extension import BuildExtension, CUDAExtension

cxx_args = ['-std=c++11']

nvcc_args = [
    '-gencode', 'arch=compute_50,code=sm_50',
    '-gencode', 'arch=compute_52,code=sm_52',
    '-gencode', 'arch=compute_60,code=sm_60',
    '-gencode', 'arch=compute_61,code=sm_61',
    '-gencode', 'arch=compute_70,code=sm_70',
    '-gencode', 'arch=compute_70,code=compute_70'
]

setup(
    name='correlation_cuda',
    ext_modules=[
        CUDAExtension('correlation_cuda', [
            'correlation_cuda.cc',
            'correlation_cuda_kernel.cu'
        ], extra_compile_args={'cxx': cxx_args, 'nvcc': nvcc_args})
    ],
    cmdclass={
        'build_ext': BuildExtension
    })

Attaching a screenshot for the complete reference. Why is this problem occurring? What's the solution?