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There could be a few reasons why pip3 in venv is not installing the desired version of setuptools:

1. The desired version of setuptools may not be available in the package repositories that pip3 is searching through. In this case, you may need to specify a different package source or download the desired version of setuptools manually and install it from a local file.

2. There could be conflicting dependencies or requirements specified in the project's setup files, which are preventing pip3 from installing the desired version of setuptools. In this case, you may need to modify the setup files to resolve the dependencies or explicitly specify the version of setuptools that you want to use.

3. There could be issues with the venv environment or pip3 itself, which are preventing the desired version of setuptools from being installed correctly. You may need to troubleshoot and resolve any issues with the environment or pip3 before attempting to install the package again.