diff --git a/CHANGELOG.md b/CHANGELOG.md
index 0d4dcaaf..91ae423d 100644
--- a/CHANGELOG.md
+++ b/CHANGELOG.md
@@ -11,6 +11,7 @@ and this project adheres to [Semantic Versioning 2.0](https://semver.org/spec/v2
 ### Fixed
 - Fixed [#559](https://github.com/LykosAI/StabilityMatrix/issues/559) - "Unable to load bitmap from provided data" error in Checkpoints page
 - Fixed [#522](https://github.com/LykosAI/StabilityMatrix/issues/522) - Incorrect output directory path for latest Auto1111
+- Fixed CLIP Install errors due to setuptools distutils conflict, added default environment variable setting `SETUPTOOLS_USE_DISTUTILS=stdlib`
 
 ## v2.10.0-pre.2
 ### Added
diff --git a/StabilityMatrix.Avalonia/ViewModels/Settings/MainSettingsViewModel.cs b/StabilityMatrix.Avalonia/ViewModels/Settings/MainSettingsViewModel.cs
index 0da8ab4c..c02c396b 100644
--- a/StabilityMatrix.Avalonia/ViewModels/Settings/MainSettingsViewModel.cs
+++ b/StabilityMatrix.Avalonia/ViewModels/Settings/MainSettingsViewModel.cs
@@ -365,7 +365,7 @@ public partial class MainSettingsViewModel : PageViewModelBase
         var viewModel = dialogFactory.Get<EnvVarsViewModel>();
 
         // Load current settings
-        var current = settingsManager.Settings.EnvironmentVariables ?? new Dictionary<string, string>();
+        var current = settingsManager.Settings.UserEnvironmentVariables ?? new Dictionary<string, string>();
         viewModel.EnvVars = new ObservableCollection<EnvVarKeyPair>(
             current.Select(kvp => new EnvVarKeyPair(kvp.Key, kvp.Value))
         );
@@ -385,7 +385,7 @@ public partial class MainSettingsViewModel : PageViewModelBase
                 .EnvVars.Where(kvp => !string.IsNullOrWhiteSpace(kvp.Key))
                 .GroupBy(kvp => kvp.Key, StringComparer.Ordinal)
                 .ToDictionary(g => g.Key, g => g.First().Value, StringComparer.Ordinal);
-            settingsManager.Transaction(s => s.EnvironmentVariables = newEnvVars);
+            settingsManager.Transaction(s => s.UserEnvironmentVariables = newEnvVars);
         }
     }
 
diff --git a/StabilityMatrix.Core/Models/Settings/Settings.cs b/StabilityMatrix.Core/Models/Settings/Settings.cs
index bf5e080f..01e22fd2 100644
--- a/StabilityMatrix.Core/Models/Settings/Settings.cs
+++ b/StabilityMatrix.Core/Models/Settings/Settings.cs
@@ -110,7 +110,18 @@ public class Settings
 
     public bool IsDiscordRichPresenceEnabled { get; set; }
 
-    public Dictionary<string, string>? EnvironmentVariables { get; set; }
+    [JsonIgnore]
+    public Dictionary<string, string> DefaultEnvironmentVariables { get; } =
+        new() { ["SETUPTOOLS_USE_DISTUTILS"] = "stdlib" };
+
+    [JsonPropertyName("EnvironmentVariables")]
+    public Dictionary<string, string>? UserEnvironmentVariables { get; set; }
+
+    [JsonIgnore]
+    public IReadOnlyDictionary<string, string> EnvironmentVariables =>
+        DefaultEnvironmentVariables
+            .Concat(UserEnvironmentVariables ?? [])
+            .ToDictionary(x => x.Key, x => x.Value);
 
     public HashSet<string>? InstalledModelHashes { get; set; } = new();