Ladybug Tools 1.6.0 installation issue with Rhino 8 (WIP)

I am trying to install LBT for Rhino 8 WIP on Windows 10.0.19041.3086.

I get a lot of “fatal errors” from the LBInstall component:

0. Installing Ladybug Tools core Python libraries.
1. Installing lbt-dragonfly==0.9.408 via pip using
C:\Users\sawen\ladybug_tools\python\python.exe
2. Fatal Python error: initfsencoding: unable to load the file system codec
ImportError: bad magic number in 'encodings': b'a\r\r\n'

Current thread 0x0000222c (most recent call first):
3. 
4. Installing Ladybug Tools recipes.
5. Installing lbt-recipes==0.23.2 via pip using
C:\Users\sawen\ladybug_tools\python\python.exe
6. Fatal Python error: initfsencoding: unable to load the file system codec
ImportError: bad magic number in 'encodings': b'a\r\r\n'

Current thread 0x00003898 (most recent call first):
7. 
8. Installing ladybug-rhino Python library.
9. Installing ladybug-rhino==1.39.6 via pip using
C:\Users\sawen\ladybug_tools\python\python.exe
10. Fatal Python error: initfsencoding: unable to load the file system codec
ImportError: bad magic number in 'encodings': b'a\r\r\n'

Current thread 0x00003ef4 (most recent call first):
11. 
12. Successfully set Python search path to: C:\Users\sawen\ladybug_tools\python\Lib\site-packages
13. Writing set_python_path batch File to:
C:\Users\sawen\ladybug_tools\set_python_path.bat
 
14. Installing Ladybug Tools Grasshopper components.
15. Installing lbt-grasshopper==1.6.0 via pip using
C:\Users\sawen\ladybug_tools\python\python.exe
16. Fatal Python error: initfsencoding: unable to load the file system codec
ImportError: bad magic number in 'encodings': b'a\r\r\n'

Current thread 0x00004b58 (most recent call first):
17. 
18. Installing ladybug-grasshopper-dotnet==1.2.2 via pip using
C:\Users\sawen\ladybug_tools\python\python.exe
19. Fatal Python error: initfsencoding: unable to load the file system codec
ImportError: bad magic number in 'encodings': b'a\r\r\n'

Current thread 0x0000459c (most recent call first):
20. 
21. Installing Honeybee-OpenStudio gem version 2.33.5.
22. Downloading "honeybee-openstudio-gem"  github repository to: C:\Users\sawen\ladybug_tools\resources\measures
23. Copying "honeybee_openstudio_gem" source code to C:\Users\sawen\ladybug_tools\resources\measures\honeybee_openstudio_gem\lib
 
24. Installing Ladybug Tools Measures version 0.2.3.
25. Downloading "lbt-measures"  github repository to: C:\Users\sawen\ladybug_tools\resources\measures
26. Copying "lbt_measures" source code to C:\Users\sawen\ladybug_tools\resources\measures
 
27. Installing Honeybee energy standards.
28. Installing honeybee-energy-standards==2.2.6 via pip using
C:\Users\sawen\ladybug_tools\python\python.exe
29. Fatal Python error: initfsencoding: unable to load the file system codec
ImportError: bad magic number in 'encodings': b'a\r\r\n'

Current thread 0x000044dc (most recent call first):
30. 
31. Setting up user standards.
32. Ladybug Tools 1.6 has been successfully installed
33. RESTART RHINO to load the new components + library.

It claims the installation was successful but I can’t find Ladybug Tools among the GH libraries. What is going on?

Running the commands in cmd instead e.g. ./python -m pip install lbt-dragonfly==0.9.408 works fine so it must be an issue with the communication between the GH script and the Python executable.

Yes Installer Fails on V8 even when Choosing .NetFramework over .NetCore in the setDotnetRuntime.
My way of making it work is to install LBT using V7 and that should work once you launch it in v8.