pythonExtension and python runtime improvements #2198

Job	Run time
units / 🧪 Unit Tests	2m 17s
typecheck / typecheck	3m 34s
e2e / 🧪 CLI v3 tests (ubuntu-latest - npm)	1m 53s
e2e / 🧪 CLI v3 tests (ubuntu-latest - pnpm)	1m 50s
e2e / 🧪 CLI v3 tests (windows-latest - npm)	4m 52s
e2e / 🧪 CLI v3 tests (windows-latest - pnpm)	4m 10s
	18m 36s

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