App Engine development environment fails to launch

Question

After upgrading my app engine dev environment to 1.7.6, an app cannot start. When running locally, I get the following error, which is not inside the project code.

Traceback (most recent call last): File "/Applications/GoogleAppEngineLauncher.app/Contents/Resources/GoogleAppEngine-default.bundle/Contents/Resources/google_appengine/_python_runtime.py", line 194, in _run_file(file, globals()) File "/Applications/GoogleAppEngineLauncher.app/Contents/Resources/GoogleAppEngine-default.bundle/Contents/Resources/google_appengine/_python_runtime.py", line 190, in _run_file execfile(script_path, globals_) File "/Applications/GoogleAppEngineLauncher.app/Contents/Resources/GoogleAppEngine-default.bundle/Contents/Resources/google_appengine/google/appengine/tools/devappserver2/python/runtime.py", line 101, in main() File "/Applications/GoogleAppEngineLauncher.app/Contents/Resources/GoogleAppEngine-default.bundle/Contents/Resources/google_appengine/google/appengine/tools/devappserver2/python/runtime.py", line 78, in main sandbox.enable_sandbox(config) File "/Applications/GoogleAppEngineLauncher.app/Contents/Resources/GoogleAppEngine-default.bundle/Contents/Resources/google_appengine/google/appengine/tools/devappserver2/python/sandbox.py", line 164, in enable_sandbox from google.appengine.runtime import runtime File "/Applications/GoogleAppEngineLauncher.app/Contents/Resources/GoogleAppEngine-default.bundle/Contents/Resources/google_appengine/google/appengine/runtime/runtime.py", line 39, in from google.appengine.runtime import cgi File "/Applications/GoogleAppEngineLauncher.app/Contents/Resources/GoogleAppEngine-default.bundle/Contents/Resources/google_appengine/google/appengine/runtime/cgi.py", line 31, in from email import feedparser ImportError: cannot import name feedparser

Strangely, four other apps will start without error. I cannot find anything in this failed project that has changed or would lead to this error.

Also of note...

• The app runs when deployed to App Engine
• When I downgrade the SDK to 1.7.5, the app starts running again

App definition

application: myapp
version: 1
runtime: python27
api_version: 1
threadsafe: true

derived_file_type:
- python_precompiled

inbound_services:

handlers:

- url: /css
  static_dir: public/css

- url: /img
  static_dir: public/img

- url: /js
  static_dir: public/js

- url: /favicon.ico
  static_files: public/img/favicon.ico
  upload: public/img/favicon.ico

- url: /_ah/mail/.+
  script: email.email.app

- url: .*
  script: main.app