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Given that, after the release of 103.0 LTS, we're now on track for bigger chances, let's start by dropping Python 3.7 support.
There are a number of features that are available on Python 3.8 and later only. One example is the availibility of importlib.metadata stardand library, which we intend to use to replace pkg_resources (and then setuptools as a whole).
As for Avocado users and important platforms, we're on a good position such as QEMU already requiring Python 3.8, and CentOS Stream 9 shipping Python 3.9.18.
Reference: #5754