diff --git a/template_content/pyproject.toml.jinja b/template_content/pyproject.toml.jinja
index ebac4b90..89a12418 100644
--- a/template_content/pyproject.toml.jinja
+++ b/template_content/pyproject.toml.jinja
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 {% if use_python_black -%}
 black = {extras = ["d"], version = "*"}
 {% endif -%}
diff --git a/tests_generated/test_default_parameters/pyproject.toml b/tests_generated/test_default_parameters/pyproject.toml
index ad12f712..80d82aa8 100644
--- a/tests_generated/test_default_parameters/pyproject.toml
+++ b/tests_generated/test_default_parameters/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"
diff --git a/tests_generated/test_deployment_language-python/pyproject.toml b/tests_generated/test_deployment_language-python/pyproject.toml
index e74425f3..a3dccdc7 100644
--- a/tests_generated/test_deployment_language-python/pyproject.toml
+++ b/tests_generated/test_deployment_language-python/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"
diff --git a/tests_generated/test_deployment_language-typescript/pyproject.toml b/tests_generated/test_deployment_language-typescript/pyproject.toml
index 5b443fd5..d769250b 100644
--- a/tests_generated/test_deployment_language-typescript/pyproject.toml
+++ b/tests_generated/test_deployment_language-typescript/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pip-audit = "*"
 
diff --git a/tests_generated/test_ide_jetbrains-False/pyproject.toml b/tests_generated/test_ide_jetbrains-False/pyproject.toml
index 8eac9a34..111a3298 100644
--- a/tests_generated/test_ide_jetbrains-False/pyproject.toml
+++ b/tests_generated/test_ide_jetbrains-False/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"
diff --git a/tests_generated/test_ide_jetbrains-True/pyproject.toml b/tests_generated/test_ide_jetbrains-True/pyproject.toml
index 91415256..d0fe446c 100644
--- a/tests_generated/test_ide_jetbrains-True/pyproject.toml
+++ b/tests_generated/test_ide_jetbrains-True/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"
diff --git a/tests_generated/test_ide_vscode-False/pyproject.toml b/tests_generated/test_ide_vscode-False/pyproject.toml
index 82a22a0f..a6ef6b64 100644
--- a/tests_generated/test_ide_vscode-False/pyproject.toml
+++ b/tests_generated/test_ide_vscode-False/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"
diff --git a/tests_generated/test_ide_vscode-True/pyproject.toml b/tests_generated/test_ide_vscode-True/pyproject.toml
index 39dd49f3..5bc56e27 100644
--- a/tests_generated/test_ide_vscode-True/pyproject.toml
+++ b/tests_generated/test_ide_vscode-True/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"
diff --git a/tests_generated/test_preset_name-production/pyproject.toml b/tests_generated/test_preset_name-production/pyproject.toml
index f6124eb6..6c7f51ab 100644
--- a/tests_generated/test_preset_name-production/pyproject.toml
+++ b/tests_generated/test_preset_name-production/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 ruff = "^0.1.6"
 mypy = "*"
diff --git a/tests_generated/test_preset_name-starter/pyproject.toml b/tests_generated/test_preset_name-starter/pyproject.toml
index 709b3beb..d1abb402 100644
--- a/tests_generated/test_preset_name-starter/pyproject.toml
+++ b/tests_generated/test_preset_name-starter/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"
diff --git a/tests_generated/test_python_linter-flake8/pyproject.toml b/tests_generated/test_python_linter-flake8/pyproject.toml
index 6e6c9809..5bd46555 100644
--- a/tests_generated/test_python_linter-flake8/pyproject.toml
+++ b/tests_generated/test_python_linter-flake8/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 flake8 = "*"
 pytest = "*"
diff --git a/tests_generated/test_python_linter-none/pyproject.toml b/tests_generated/test_python_linter-none/pyproject.toml
index 88af9810..ee138e16 100644
--- a/tests_generated/test_python_linter-none/pyproject.toml
+++ b/tests_generated/test_python_linter-none/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"
diff --git a/tests_generated/test_python_linter-ruff/pyproject.toml b/tests_generated/test_python_linter-ruff/pyproject.toml
index f94609f6..1c6af737 100644
--- a/tests_generated/test_python_linter-ruff/pyproject.toml
+++ b/tests_generated/test_python_linter-ruff/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 ruff = "^0.1.6"
 pytest = "*"
diff --git a/tests_generated/test_smart_contract_generator_default_production_preset_python/pyproject.toml b/tests_generated/test_smart_contract_generator_default_production_preset_python/pyproject.toml
index ba924de8..af8865e5 100644
--- a/tests_generated/test_smart_contract_generator_default_production_preset_python/pyproject.toml
+++ b/tests_generated/test_smart_contract_generator_default_production_preset_python/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 ruff = "^0.1.6"
 mypy = "*"
diff --git a/tests_generated/test_smart_contract_generator_default_production_preset_typescript/pyproject.toml b/tests_generated/test_smart_contract_generator_default_production_preset_typescript/pyproject.toml
index f5d27483..f1748ef7 100644
--- a/tests_generated/test_smart_contract_generator_default_production_preset_typescript/pyproject.toml
+++ b/tests_generated/test_smart_contract_generator_default_production_preset_typescript/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 ruff = "^0.1.6"
 mypy = "*"
diff --git a/tests_generated/test_smart_contract_generator_default_starter_preset_python/pyproject.toml b/tests_generated/test_smart_contract_generator_default_starter_preset_python/pyproject.toml
index 6e93ede6..42826a20 100644
--- a/tests_generated/test_smart_contract_generator_default_starter_preset_python/pyproject.toml
+++ b/tests_generated/test_smart_contract_generator_default_starter_preset_python/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"
diff --git a/tests_generated/test_smart_contract_generator_default_starter_preset_typescript/pyproject.toml b/tests_generated/test_smart_contract_generator_default_starter_preset_typescript/pyproject.toml
index 75ed874c..b3843c61 100644
--- a/tests_generated/test_smart_contract_generator_default_starter_preset_typescript/pyproject.toml
+++ b/tests_generated/test_smart_contract_generator_default_starter_preset_typescript/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pip-audit = "*"
 
diff --git a/tests_generated/test_use_github_actions-False/pyproject.toml b/tests_generated/test_use_github_actions-False/pyproject.toml
index 7fae289e..5cd5a8fb 100644
--- a/tests_generated/test_use_github_actions-False/pyproject.toml
+++ b/tests_generated/test_use_github_actions-False/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"
diff --git a/tests_generated/test_use_github_actions-True/pyproject.toml b/tests_generated/test_use_github_actions-True/pyproject.toml
index c1583815..c77929b4 100644
--- a/tests_generated/test_use_github_actions-True/pyproject.toml
+++ b/tests_generated/test_use_github_actions-True/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"
diff --git a/tests_generated/test_use_python_black-False/pyproject.toml b/tests_generated/test_use_python_black-False/pyproject.toml
index 5a5300b9..c046be30 100644
--- a/tests_generated/test_use_python_black-False/pyproject.toml
+++ b/tests_generated/test_use_python_black-False/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 pytest = "*"
 pytest-cov = "*"
 pip-audit = "*"
diff --git a/tests_generated/test_use_python_black-True/pyproject.toml b/tests_generated/test_use_python_black-True/pyproject.toml
index e4030222..878aacd0 100644
--- a/tests_generated/test_use_python_black-True/pyproject.toml
+++ b/tests_generated/test_use_python_black-True/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"
diff --git a/tests_generated/test_use_python_mypy-False/pyproject.toml b/tests_generated/test_use_python_mypy-False/pyproject.toml
index df9201b6..966648e1 100644
--- a/tests_generated/test_use_python_mypy-False/pyproject.toml
+++ b/tests_generated/test_use_python_mypy-False/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"
diff --git a/tests_generated/test_use_python_mypy-True/pyproject.toml b/tests_generated/test_use_python_mypy-True/pyproject.toml
index 32913534..0b3a4819 100644
--- a/tests_generated/test_use_python_mypy-True/pyproject.toml
+++ b/tests_generated/test_use_python_mypy-True/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 mypy = "*"
 pytest = "*"
diff --git a/tests_generated/test_use_python_pytest-False/pyproject.toml b/tests_generated/test_use_python_pytest-False/pyproject.toml
index 9a390ed7..1b21f36e 100644
--- a/tests_generated/test_use_python_pytest-False/pyproject.toml
+++ b/tests_generated/test_use_python_pytest-False/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pip-audit = "*"
 
diff --git a/tests_generated/test_use_python_pytest-True/pyproject.toml b/tests_generated/test_use_python_pytest-True/pyproject.toml
index 3b975ba1..8119335c 100644
--- a/tests_generated/test_use_python_pytest-True/pyproject.toml
+++ b/tests_generated/test_use_python_pytest-True/pyproject.toml
@@ -12,6 +12,7 @@ algokit-utils = "^2.2.0"
 python-dotenv = "^1.0.0"
 
 [tool.poetry.group.dev.dependencies]
+setuptools = "^69.0.2" # Adding explicitly to work around pyteal https://github.com/algorand/pyteal/issues/712
 black = {extras = ["d"], version = "*"}
 pytest = "*"
 pytest-cov = "*"