based on the output, it looks like pants is failing to run `python3.6 setup.py bdist_egg` against the setuptools-5.4.1 sdist during interpreter bootstrap. you could try fetching setuptools-5.4.1.tar.gz and running the same command to attempt an external repro. ultimately, this is likely just a matter of pants not yet being tested with python 3.6 due to it just being released a week or two ago.
we did recently bump setuptools to the latest version, so you might try this with a version of pants that includes the setuptools version bump (may need to be a dev release).