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[BUG] setuptools 70.0.0 breaks PyTorch 2.1 #2406

@fakezeta

Description

@fakezeta

LocalAI version:
2.16

Environment, CPU architecture, OS, and Version:
docker

Describe the bug
As described in #4376 PyTorch <2.2 is not working with setuptools 70.0.0
This impact most of python backend.

Logs

Error: cannot import name 'packaging' from 'pkg_resources' (/build/backend/python/transformers/venv/lib/python3.10/site-packages/pkg_resources/__init__.py)

Additional context
Bumping Pytorch for all the builds is not possible due to Intel still not releasing PyTorch 2.2+ package. We should fix the version to setuptools==69.5.1 until we can safely bump PyTorch to 2.2+

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