diff --git a/CHANGELOG.md b/CHANGELOG.md
index 546b1b81..c644343d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -5,6 +5,10 @@ All notable changes to Stability Matrix will be documented in this file.
 The format is based on [Keep a Changelog](https://keepachangelog.com/en/1.1.0/),
 and this project adheres to [Semantic Versioning 2.0](https://semver.org/spec/v2.0.0.html).
 
+## v2.10.1
+### Fixed
+- Fixed package launch not working when environment variable `SETUPTOOLS_USE_DISTUTILS` is set due to conflict with a default environment variable. User environment variables will now correctly override any default environment variables.
+
 ## v2.10.0
 ### Added
 - Added Reference-Only mode for Inference ControlNet, used for guiding the sampler with an image without a pretrained model. Part of the latent and attention layers will be connected to the reference image, similar to Image to Image or Inpainting.
diff --git a/StabilityMatrix.Core/Models/Settings/Settings.cs b/StabilityMatrix.Core/Models/Settings/Settings.cs
index 01e22fd2..ff65f104 100644
--- a/StabilityMatrix.Core/Models/Settings/Settings.cs
+++ b/StabilityMatrix.Core/Models/Settings/Settings.cs
@@ -118,10 +118,22 @@ public class Settings
     public Dictionary<string, string>? UserEnvironmentVariables { get; set; }
 
     [JsonIgnore]
-    public IReadOnlyDictionary<string, string> EnvironmentVariables =>
-        DefaultEnvironmentVariables
-            .Concat(UserEnvironmentVariables ?? [])
-            .ToDictionary(x => x.Key, x => x.Value);
+    public IReadOnlyDictionary<string, string> EnvironmentVariables
+    {
+        get
+        {
+            if (UserEnvironmentVariables is null || UserEnvironmentVariables.Count == 0)
+            {
+                return DefaultEnvironmentVariables;
+            }
+
+            return DefaultEnvironmentVariables
+                .Concat(UserEnvironmentVariables)
+                .GroupBy(pair => pair.Key)
+                // User variables override default variables with the same key
+                .ToDictionary(grouping => grouping.Key, grouping => grouping.Last().Value);
+        }
+    }
 
     public HashSet<string>? InstalledModelHashes { get; set; } = new();