I have spent 12+ hours debugging this and have come to the conclusion that new version of setuptools broke CI test for test_lock_nested_vcs_direct_url and it was because requirementslib isn't passing in the subdirectory as the directory, and this used to work for setuptools but now creates a different style package.

Issue description

PR out for review addresses this with a patch to requirementslib until we can address the CI failures in requirementslib and get a proper new build out there.

Expected result

Expected existing test test_lock_nested_vcs_direct_url that passed 4 days ago to continue passing.
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Actual result

Well you know how it goes ...