diff --git a/api/pyproject.toml b/api/pyproject.toml
index 9fc348fcf6..27d3f1a42e 100644
--- a/api/pyproject.toml
+++ b/api/pyproject.toml
@@ -82,6 +82,8 @@ dependencies = [
     "redis[hiredis]~=6.1.0",
     "resend~=2.9.0",
     "sentry-sdk[flask]~=2.28.0",
+    # opentelemetry-instrumentation==0.48b0 imports pkg_resources, removed for setuptools>=81.
+    "setuptools<81",
     "sqlalchemy~=2.0.29",
     "starlette==0.49.1",
     "tiktoken~=0.9.0",
diff --git a/api/uv.lock b/api/uv.lock
index 67eca6f32e..94187d6e19 100644
--- a/api/uv.lock
+++ b/api/uv.lock
@@ -1561,6 +1561,7 @@ dependencies = [
     { name = "resend" },
     { name = "sendgrid" },
     { name = "sentry-sdk", extra = ["flask"] },
+    { name = "setuptools" },
     { name = "sqlalchemy" },
     { name = "sseclient-py" },
     { name = "starlette" },
@@ -1768,6 +1769,7 @@ requires-dist = [
     { name = "resend", specifier = "~=2.9.0" },
     { name = "sendgrid", specifier = "~=6.12.3" },
     { name = "sentry-sdk", extras = ["flask"], specifier = "~=2.28.0" },
+    { name = "setuptools", specifier = "<81" },
     { name = "sqlalchemy", specifier = "~=2.0.29" },
     { name = "sseclient-py", specifier = "~=1.8.0" },
     { name = "starlette", specifier = "==0.49.1" },
@@ -6047,11 +6049,11 @@ flask = [
 
 [[package]]
 name = "setuptools"
-version = "82.0.0"
+version = "80.10.2"
 source = { registry = "https://pypi.org/simple" }
-sdist = { url = "https://files.pythonhosted.org/packages/82/f3/748f4d6f65d1756b9ae577f329c951cda23fb900e4de9f70900ced962085/setuptools-82.0.0.tar.gz", hash = "sha256:22e0a2d69474c6ae4feb01951cb69d515ed23728cf96d05513d36e42b62b37cb", size = 1144893, upload-time = "2026-02-08T15:08:40.206Z" }
+sdist = { url = "https://files.pythonhosted.org/packages/76/95/faf61eb8363f26aa7e1d762267a8d602a1b26d4f3a1e758e92cb3cb8b054/setuptools-80.10.2.tar.gz", hash = "sha256:8b0e9d10c784bf7d262c4e5ec5d4ec94127ce206e8738f29a437945fbc219b70", size = 1200343, upload-time = "2026-01-25T22:38:17.252Z" }
 wheels = [
-    { url = "https://files.pythonhosted.org/packages/e1/c6/76dc613121b793286a3f91621d7b75a2b493e0390ddca50f11993eadf192/setuptools-82.0.0-py3-none-any.whl", hash = "sha256:70b18734b607bd1da571d097d236cfcfacaf01de45717d59e6e04b96877532e0", size = 1003468, upload-time = "2026-02-08T15:08:38.723Z" },
+    { url = "https://files.pythonhosted.org/packages/94/b8/f1f62a5e3c0ad2ff1d189590bfa4c46b4f3b6e49cef6f26c6ee4e575394d/setuptools-80.10.2-py3-none-any.whl", hash = "sha256:95b30ddfb717250edb492926c92b5221f7ef3fbcc2b07579bcd4a27da21d0173", size = 1064234, upload-time = "2026-01-25T22:38:15.216Z" },
 ]
 
 [[package]]