Failure of creating haproxy mysql user

All in one deployment on stable/mitaka and master fails with the following traceback. Suspecting this issue is triggered by recent CentOS update. Here is the failure message: VersionConflict: (setuptools 0.9.8 (/usr/lib/python2.7/site-packages), Requirement.parse('setuptools>=11.3'))

TASK: [mariadb | Waiting for MariaDB service to be ready] *********************
ok: [192.168.80.24]

TASK: [mariadb | Creating haproxy mysql user] *********************************
failed: [192.168.80.24] => {"attempts": 10, "changed": false, "cmd": ["docker", "exec", "-t", "kolla_toolbox", "/usr/bin/ansible", "localhost", "-m", "mysql_user", "-a", "login_host='192.168.80.24' login_port='3306' login_user='root' login_password='wPsZfDxD0sxqZ3F8T3fbavjjSzIYHi0hpZQ5UoTs' name='haproxy' password='' host='%' priv=*.*:USAGE"], "delta": "0:00:00.299353", "end": "2016-05-01 23:02:55.623531", "failed": true, "rc": 250, "start": "2016-05-01 23:02:55.324178", "stdout_lines": ["ERROR! Unexpected Exception: (setuptools 0.9.8 (/usr/lib/python2.7/site-packages), Requirement.parse('setuptools>=11.3'))", "the full traceback was:", "", "Traceback (most recent call last):", " File \"/usr/bin/ansible\", line 75, in <module>", " from ansible.cli.adhoc import AdHocCLI as mycli", " File \"/usr/lib/python2.7/site-packages/ansible/cli/adhoc.py\", line 28, in <module>", " from ansible.executor.task_queue_manager import TaskQueueManager", " File \"/usr/lib/python2.7/site-packages/ansible/executor/task_queue_manager.py\", line 28, in <module>", " from ansible.executor.play_iterator import PlayIterator", " File \"/usr/lib/python2.7/site-packages/ansible/executor/play_iterator.py\", line 29, in <module>", " from ansible.playbook.block import Block", " File \"/usr/lib/python2.7/site-packages/ansible/playbook/__init__.py\", line 25, in <module>", " from ansible.playbook.play import Play", " File \"/usr/lib/python2.7/site-packages/ansible/playbook/play.py\", line 27, in <module>", " from ansible.playbook.base import Base", " File \"/usr/lib/python2.7/site-packages/ansible/playbook/base.py\", line 35, in <module>", " from ansible.parsing.dataloader import DataLoader", " File \"/usr/lib/python2.7/site-packages/ansible/parsing/dataloader.py\", line 31, in <module>", " from ansible.parsing.vault import VaultLib", " File \"/usr/lib/python2.7/site-packages/ansible/parsing/vault/__init__.py\", line 67, in <module>", " from cryptography.hazmat.primitives.hashes import SHA256 as c_SHA256", " File \"/usr/lib64/python2.7/site-packages/cryptography/hazmat/primitives/hashes.py\", line 15, in <module>", " from cryptography.hazmat.backends.interfaces import HashBackend", " File \"/usr/lib64/python2.7/site-packages/cryptography/hazmat/backends/__init__.py\", line 7, in <module>", " import pkg_resources", " File \"/usr/lib/python2.7/site-packages/pkg_resources.py\", line 3011, in <module>", " parse_requirements(__requires__), Environment()", " File \"/usr/lib/python2.7/site-packages/pkg_resources.py\", line 630, in resolve", " raise VersionConflict(dist,req) # XXX put more info here", "VersionConflict: (setuptools 0.9.8 (/usr/lib/python2.7/site-packages), Requirement.parse('setuptools>=11.3'))"], "warnings": []}
stdout: ERROR! Unexpected Exception: (setuptools 0.9.8 (/usr/lib/python2.7/site-packages), Requirement.parse('setuptools>=11.3'))
the full traceback was:

Traceback (most recent call last):
  File "/usr/bin/ansible", line 75, in <module>
    from ansible.cli.adhoc import AdHocCLI as mycli
  File "/usr/lib/python2.7/site-packages/ansible/cli/adhoc.py", line 28, in <module>
    from ansible.executor.task_queue_manager import TaskQueueManager
  File "/usr/lib/python2.7/site-packages/ansible/executor/task_queue_manager.py", line 28, in <module>
    from ansible.executor.play_iterator import PlayIterator
  File "/usr/lib/python2.7/site-packages/ansible/executor/play_iterator.py", line 29, in <module>
    from ansible.playbook.block import Block
  File "/usr/lib/python2.7/site-packages/ansible/playbook/__init__.py", line 25, in <module>
    from ansible.playbook.play import Play
  File "/usr/lib/python2.7/site-packages/ansible/playbook/play.py", line 27, in <module>
    from ansible.playbook.base import Base
  File "/usr/lib/python2.7/site-packages/ansible/playbook/base.py", line 35, in <module>
    from ansible.parsing.dataloader import DataLoader
  File "/usr/lib/python2.7/site-packages/ansible/parsing/dataloader.py", line 31, in <module>
    from ansible.parsing.vault import VaultLib
  File "/usr/lib/python2.7/site-packages/ansible/parsing/vault/__init__.py", line 67, in <module>
    from cryptography.hazmat.primitives.hashes import SHA256 as c_SHA256
  File "/usr/lib64/python2.7/site-packages/cryptography/hazmat/primitives/hashes.py", line 15, in <module>
    from cryptography.hazmat.backends.interfaces import HashBackend
  File "/usr/lib64/python2.7/site-packages/cryptography/hazmat/backends/__init__.py", line 7, in <module>
    import pkg_resources
  File "/usr/lib/python2.7/site-packages/pkg_resources.py", line 3011, in <module>
    parse_requirements(__requires__), Environment()
  File "/usr/lib/python2.7/site-packages/pkg_resources.py", line 630, in resolve
    raise VersionConflict(dist,req) # XXX put more info here
VersionConflict: (setuptools 0.9.8 (/usr/lib/python2.7/site-packages), Requirement.parse('setuptools>=11.3'))
msg: Task failed as maximum retries was encountered

FATAL: all hosts have already failed -- aborting

PLAY RECAP ********************************************************************
           to retry, use: --limit @/root/site.retry

192.168.80.24 : ok=74 changed=33 unreachable=0 failed=1

Command failed ansible-playbook -i /root/deployments/kolla_latest/kolla/ansible/inventory/all-in-one -e @/etc/kolla/globals.yml -e @/etc/kolla/passwords.yml -e CONFIG_DIR=/etc/kolla -e action=deploy /root/deployments/kolla_latest/kolla/ansible/site.yml