I had to add these two lines to the setup.sh script to get this working correctly:
Install Python backend dependencies
echo -e "${BLUE}Installing Python backend dependencies...${NC}"
if [ -f "backend/requirements.txt" ]; then
cd backend
python3 -m venv venv
source venv/bin/activate
pip install -r requirements.txt
cd "$ROOT_DIR"
else
echo -e "${RED}Error: requirements.txt not found in backend directory${NC}"
exit 1
fi