Installation fails with: No module named 'encodings'

Thanks @fluhus, I'll ask you to take a closer look at this line from your env var output:

Setting PYTHONHOME is generally considered incompatible with conda:

https://docs.conda.io/projects/conda/en/latest/user-guide/troubleshooting.html#conda-reports-that-a-package-is-installed-but-it-appears-not-to-be

You can check the link above for suggestions on how to resolve.