diff --git a/.bazelrc b/.bazelrc
index 24676574e6..205c04c5ce 100644
--- a/.bazelrc
+++ b/.bazelrc
@@ -41,3 +41,8 @@ common --incompatible_python_disallow_native_rules
 common --incompatible_no_implicit_file_export
 
 build --lockfile_mode=update
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
+startup --windows_enable_symlinks
diff --git a/.bcr/gazelle/presubmit.yml b/.bcr/gazelle/presubmit.yml
index 99647cac6f..40226c606d 100644
--- a/.bcr/gazelle/presubmit.yml
+++ b/.bcr/gazelle/presubmit.yml
@@ -27,10 +27,14 @@ bcr_test_module:
       platform: ${{ platform }}
       bazel: ${{ bazel }}
       shell_commands:
+        # Add an empty line in case the bazelrc is missing a trailing newline
+        - "echo '' >> .bazelrc"
         - "echo 'common --override_module=rules_python=' >> .bazelrc"
         - "bazel run //:gazelle_python_manifest.update"
         - "bazel run //:gazelle -- update"
       batch_commands:
+        # Add an empty line in case the bazelrc is missing a trailing newline
+        - "echo '' >> .bazelrc"
         - "echo common --override_module=rules_python= >> .bazelrc"
         - "bazel run //:gazelle_python_manifest.update"
         - "bazel run //:gazelle -- update"
diff --git a/examples/build_file_generation/.bazelrc b/examples/build_file_generation/.bazelrc
index f1ae44fac8..e14ed7c9f6 100644
--- a/examples/build_file_generation/.bazelrc
+++ b/examples/build_file_generation/.bazelrc
@@ -8,3 +8,7 @@ build --enable_runfiles
 common --noenable_bzlmod
 common --enable_workspace
 common --incompatible_python_disallow_native_rules
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
\ No newline at end of file
diff --git a/examples/bzlmod/.bazelrc b/examples/bzlmod/.bazelrc
index 28a44a7523..3dd26531f9 100644
--- a/examples/bzlmod/.bazelrc
+++ b/examples/bzlmod/.bazelrc
@@ -24,3 +24,7 @@ test --test_output=errors --enable_runfiles
 # Windows requires these for multi-python support:
 build --enable_runfiles
 common:bazel7.x --incompatible_python_disallow_native_rules
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
diff --git a/examples/multi_python_versions/.bazelrc b/examples/multi_python_versions/.bazelrc
index 97a973bd85..39ed55aff4 100644
--- a/examples/multi_python_versions/.bazelrc
+++ b/examples/multi_python_versions/.bazelrc
@@ -5,3 +5,7 @@ build --enable_runfiles
 
 coverage --java_runtime_version=remotejdk_11
 common:bazel7.x --incompatible_python_disallow_native_rules
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
\ No newline at end of file
diff --git a/examples/pip_parse/.bazelrc b/examples/pip_parse/.bazelrc
index f263a1744d..0df6cdc90b 100644
--- a/examples/pip_parse/.bazelrc
+++ b/examples/pip_parse/.bazelrc
@@ -1,3 +1,7 @@
 # https://docs.bazel.build/versions/main/best-practices.html#using-the-bazelrc-file
 try-import %workspace%/user.bazelrc
 common --incompatible_python_disallow_native_rules
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
diff --git a/examples/pip_parse_vendored/.bazelrc b/examples/pip_parse_vendored/.bazelrc
index a6ea2d9138..e846b1ac11 100644
--- a/examples/pip_parse_vendored/.bazelrc
+++ b/examples/pip_parse_vendored/.bazelrc
@@ -8,3 +8,7 @@ build --enable_runfiles
 common --noenable_bzlmod
 common --enable_workspace
 common --incompatible_python_disallow_native_rules
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
\ No newline at end of file
diff --git a/examples/pip_repository_annotations/.bazelrc b/examples/pip_repository_annotations/.bazelrc
index 9397bd31b8..82c7a1dbd2 100644
--- a/examples/pip_repository_annotations/.bazelrc
+++ b/examples/pip_repository_annotations/.bazelrc
@@ -7,3 +7,7 @@ common --noenable_bzlmod
 common --enable_workspace
 common --legacy_external_runfiles=false
 common --incompatible_python_disallow_native_rules
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
\ No newline at end of file
diff --git a/gazelle/.bazelrc b/gazelle/.bazelrc
index 9a38133e9d..a4cbf2dbfe 100644
--- a/gazelle/.bazelrc
+++ b/gazelle/.bazelrc
@@ -16,3 +16,7 @@ build --@rules_python//python/config_settings:incompatible_default_to_explicit_i
 build --enable_runfiles
 
 common:bazel7.x --incompatible_python_disallow_native_rules
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
diff --git a/gazelle/examples/bzlmod_build_file_generation/.bazelrc b/gazelle/examples/bzlmod_build_file_generation/.bazelrc
index 31097b41de..f9e43556f7 100644
--- a/gazelle/examples/bzlmod_build_file_generation/.bazelrc
+++ b/gazelle/examples/bzlmod_build_file_generation/.bazelrc
@@ -14,3 +14,7 @@ common:bazel7.x --incompatible_python_disallow_native_rules
 # rules_python code. In the BCR presubmits, this override is removed
 # and the bazel_dep version of rules_python is used.
 common --override_module=rules_python=../../../
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
diff --git a/gazelle/examples/bzlmod_build_file_generation/MODULE.bazel b/gazelle/examples/bzlmod_build_file_generation/MODULE.bazel
index 1f92ea3826..7db658fcec 100644
--- a/gazelle/examples/bzlmod_build_file_generation/MODULE.bazel
+++ b/gazelle/examples/bzlmod_build_file_generation/MODULE.bazel
@@ -13,7 +13,7 @@ module(
 # For typical setups you set the version.
 # See the releases page for available versions.
 # https://github.com/bazel-contrib/rules_python/releases
-bazel_dep(name = "rules_python", version = "1.4.0")
+bazel_dep(name = "rules_python", version = "1.7.0")
 
 # The following stanza defines the dependency rules_python_gazelle_plugin.
 # For typical setups you set the version.
diff --git a/python/private/build_data_writer.ps1 b/python/private/build_data_writer.ps1
index 846399f194..32fb7240f1 100644
--- a/python/private/build_data_writer.ps1
+++ b/python/private/build_data_writer.ps1
@@ -18,8 +18,10 @@ if (-not [string]::IsNullOrEmpty($InfoFilePath) -and (Test-Path $InfoFilePath))
 # Use .NET to write file to avoid PowerShell encoding/locking quirks
 # We use UTF8 without BOM for compatibility with how the bash script writes (and
 # what consumers expect).
+# We join with `n to ensure Unix-style line endings are used even on Windows.
 $Utf8NoBom = New-Object System.Text.UTF8Encoding $False
-[System.IO.File]::WriteAllLines($OutputPath, $Lines, $Utf8NoBom)
+$Content = [string]::Join("`n", $Lines) + "`n"
+[System.IO.File]::WriteAllText($OutputPath, $Content, $Utf8NoBom)
 
 $Acl = Get-Acl $OutputPath
 $AccessRule = New-Object System.Security.AccessControl.FileSystemAccessRule("Everyone", "Read", "Allow")
diff --git a/python/private/stage2_bootstrap_template.py b/python/private/stage2_bootstrap_template.py
index c03a4a2e62..e20a049279 100644
--- a/python/private/stage2_bootstrap_template.py
+++ b/python/private/stage2_bootstrap_template.py
@@ -70,15 +70,39 @@ def get_build_data(self):
         if is_windows():
             path = os.path.normpath(path)
         try:
+            path = os.path.dirname(__file__)
+            path = os.path.join(path, "print_build_data.build_data.txt")
             # Use utf-8-sig to handle Windows BOM
-            with open(path, encoding="utf-8-sig") as fp:
-                return fp.read()
+            with open(path, 'rb') as fp:
+                data = fp.read()
+            return data.decode('utf-8-sig')
         except Exception as exc:
             if hasattr(exc, "add_note"):
+                exc.add_note(f"version: {sys.version}")
+                exc.add_note(f"path: {path}")
                 exc.add_note(f"runfiles lookup path: {rlocation_path}")
                 exc.add_note(f"exists: {os.path.exists(path)}")
+                exc.add_note(f"lexists: {os.path.lexists(path)}")
+                exc.add_note(f"islink: {os.path.islink(path)}")
+                exc.add_note(f"isfile: {os.path.isfile(path)}")
+                if hasattr(os.path, "isjunction"):
+                    exc.add_note(f"isjunction: {os.path.isjunction(path)}")
                 can_read = os.access(path, os.R_OK)
                 exc.add_note(f"readable: {can_read}")
+                try:
+                    exc.add_note(f"stat: {os.stat(path)}")
+                except Exception as e:
+                    exc.add_note(f"stat error: {e}")
+                try:
+                    exc.add_note(f"lstat: {os.lstat(path)}")
+                except Exception as e:
+                    exc.add_note(f"lstat error: {e}")
+                try:
+                    import subprocess
+                    out = subprocess.check_output(f'dir "{os.path.dirname(path)}"', shell=True)
+                    exc.add_note(f"dir: {out.decode('utf-8', 'replace')}")
+                except Exception as e:
+                    exc.add_note(f"dir error: {e}")
             raise
 
 
diff --git a/tests/integration/compile_pip_requirements/.bazelrc b/tests/integration/compile_pip_requirements/.bazelrc
index b85f03bcb6..be2ceedf66 100644
--- a/tests/integration/compile_pip_requirements/.bazelrc
+++ b/tests/integration/compile_pip_requirements/.bazelrc
@@ -3,3 +3,7 @@ test --test_output=errors
 # Windows requires these for multi-python support:
 build --enable_runfiles
 common:bazel7.x --incompatible_python_disallow_native_rules
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
\ No newline at end of file
diff --git a/tests/integration/compile_pip_requirements_test_from_external_repo/.bazelrc b/tests/integration/compile_pip_requirements_test_from_external_repo/.bazelrc
index ab10c8caf7..80d2b0d97d 100644
--- a/tests/integration/compile_pip_requirements_test_from_external_repo/.bazelrc
+++ b/tests/integration/compile_pip_requirements_test_from_external_repo/.bazelrc
@@ -1,2 +1,6 @@
 test --test_output=errors
 common:bazel7.x --incompatible_python_disallow_native_rules
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
\ No newline at end of file
diff --git a/tests/integration/local_toolchains/.bazelrc b/tests/integration/local_toolchains/.bazelrc
index aed08b0790..6a920b180c 100644
--- a/tests/integration/local_toolchains/.bazelrc
+++ b/tests/integration/local_toolchains/.bazelrc
@@ -6,3 +6,7 @@ build --enable_runfiles
 common:bazel7.x --incompatible_python_disallow_native_rules
 build --//:py=local
 common --announce_rc
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
\ No newline at end of file
diff --git a/tests/integration/pip_parse/.bazelrc b/tests/integration/pip_parse/.bazelrc
index a74909297d..3d3d8bd67f 100644
--- a/tests/integration/pip_parse/.bazelrc
+++ b/tests/integration/pip_parse/.bazelrc
@@ -6,3 +6,7 @@ build --enable_runfiles
 try-import %workspace%/user.bazelrc
 
 common:bazel7.x --incompatible_python_disallow_native_rules
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
\ No newline at end of file
diff --git a/tests/integration/py_cc_toolchain_registered/.bazelrc b/tests/integration/py_cc_toolchain_registered/.bazelrc
index fb31561892..e5a95490e6 100644
--- a/tests/integration/py_cc_toolchain_registered/.bazelrc
+++ b/tests/integration/py_cc_toolchain_registered/.bazelrc
@@ -1,3 +1,7 @@
 # This aids debugging on failure
 build --toolchain_resolution_debug=python
 common:bazel7.x --incompatible_python_disallow_native_rules
+
+# See issue 3567. Disable implicit python zip creation.
+common --build_python_zip=false
+common --@rules_python//python/config_settings:build_python_zip=false
\ No newline at end of file