python-distribute and python-setuptools have merged so we need to account for this in coming releases see http://omerkatz.com/blog/2013/6/20/distribute-is-now-merged-back-to-setuptools https://pythonhosted.org/setuptools/merge-faq.html distribute 0.7.3 should just be a virtual for Setuptools 0.7+ latest on setuptools https://pythonhosted.org/setuptools/ for changes see https://pythonhosted.org/setuptools/history.html
Fixed here: http://git.yoctoproject.org/cgit/cgit.cgi/poky/commit/?id=e79a22e4560cac0ce78a1ec04d7f799421e2b80f
Verified on master c9d269ccd0d8e61335904a60ef5ce960993cba94