How to initialize existing project using setuptools?

[jbulow]

When trying to init an existing project that is using setuptools I get the following error:

$ rye init --script -p 3.10 --no-readme --build-system  setuptools --name my_project -r requirements.txt
error: failed to proxy setup.py
Traceback (most recent call last):
  File "/home/jonasbu/build/devadmin3/./setup.py", line 2, in <module>
    from setuptools import setup
  File "/tmp/.tmp5DCYY6/setuptools.py", line 12, in <module>
    import setuptools as __setuptools
  File "/tmp/.tmp5DCYY6/setuptools.py", line 12, in <module>
    import setuptools as __setuptools
ModuleNotFoundError: No module named 'setuptools'

Trying to install setuptools (again) results in:

$ rye tools install setuptools
error: package already installed

What is the correct way to make setuptools available when using rye?