Is it possible to include subdirectories using dist utils (setup.py) as part of package data?

I believe what you’re looking for is something like this for you setup.py, which will recursively find any packages in the project, also be sure and include __init__.py files to subdirectories for each package you want.

from setuptools import setup, find_packages

setup(name="MySoftware",
      packages=find_packages()
)

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