[BUG] Windows + Conda - Code compilation errors due to VS code / vcvarsall.bat -> interrogate registry swap

setuptools version

setuptools>=74

Python version

All tested versions; distributed with conda (3.9-3.12)

OS

Windows

Additional environment information

Issue only occurs on windows+conda; we do not see it on windows+pip

Description

With the recent upgrade of setuptools, one of our project's extension builds (specifically with conda) is now failing with the error:

**** Building APPSI ****
Building in 'C:\Users\RUNNER~1\AppData\Local\Temp\tmpyzw9baoa'
ERROR: DistutilsPlatformError: Microsoft Visual C++ 14.0 or greater is
required. Get it with "Microsoft C++ Build Tools":
https://visualstudio.microsoft.com/visual-cpp-build-tools/

If we downgrade to setuptools<74 or we use pip instead of conda, we do not have this issue.

Expected behavior

We expect the compilation to run / build / not hit a "version required is not available" error.

How to Reproduce

There are a lot of steps to reproduce this because it happens significantly later in the CI process:
https://github.com/mrmundt/pyomo/actions/runs/11109169438/job/30863888315

The basic steps, though, are:

1. Install miniconda for appropriate windows version
2. Install dependencies through conda
3. Install pyomo - pyomo setup.py develop
4. Run download and build extensions:

        pyomo download-extensions 
        pyomo build-extensions # this is where the error occurs

Output

**** Building APPSI ****
Building in 'C:\Users\RUNNER~1\AppData\Local\Temp\tmpyzw9baoa'
ERROR: DistutilsPlatformError: Microsoft Visual C++ 14.0 or greater is
required. Get it with "Microsoft C++ Build Tools":
https://visualstudio.microsoft.com/visual-cpp-build-tools/

Start by reproducing the Windows Conda setup from the linked CI job, then run pyomo setup.py develop, pyomo download-extensions, and pyomo build-extensions. Inspect the setuptools 74+ Windows compiler-detection path described in the title, including the vcvarsall.bat and registry handling. Done means the APPSI extension build completes without the false missing-MSVC error under Conda.